comprehensive annual financial...

Comprehensive Annual Financial Report

of the

Township of Little Egg Harbor Board of Education

Little Egg Harbor, New Jersey

For the Fiscal Year Ended June 30, 2015

Page

INTRODUCTORY SECTION

Letter of Transmittal 1-3Organizational Chart 4Roster of Officials 5Consultants and Advisors 6

FINANCIAL SECTION

Independent Auditor's Report 7-9

Required Supplementary Information - Part IManagement's Discussion and Analysis 10-19

Basic Financial Statements

A. District-Wide Statements:

A-1 Statement of Net Position 20A-2 Statement of Activities 21

B. Fund Financial Statements:

Governmental Funds:B-1 Balance Sheet 22B-2 Comparative Statement of Revenues, Expenditures and

Changes in Fund Balance 23B-3 Reconciliation of the Statement of Revenues, Expenditures, and Changes

in Fund Balances of Governmental Funds to the Statement of Activities 24

Proprietary Funds:B-4 Statement of Net Position 25B-5 Statement of Revenues, Expenses, and Changes in Net Position 26B-6 Statement of Cash Flows 27

Fiduciary Funds:B-7 Statement of Fiduciary Net Position 28B-8 Statement of Changes in Fiduciary Net Position 29

Notes to the Financial Statements 30-63

TABLE OF CONTENTS

Required Supplementary Information - Part II PageC. Budgetary Comparison Schedules

C-1 Budgetary Comparison Schedule - General Fund 64-69C-2 Budgetary Comparison Schedule - Special Revenue Fund 70-71

Notes to Required Supplementary InformationC-3 Budget-to-GAAP Reconciliation 72

Required Supplementary Information - Part III

RSI-3a Schedule of the District's Proportionate Share of the Net Pension 73Liability (PERS)

RSI-3b Schedule of District Contributions (PERS) 74RSI-3c Schedule of the District's Proportionate Share of the Net Pension 75

Liability (TPAF)RSI-3d Schedule of District Contributions (TPAF) 76

Other Supplementary InformationE. Special Revenue Fund:

E-1 Combining Schedule of Revenues and ExpendituresSpecial Revenue Fund - Budgetary Basis 77-78

E-2 Preschool Education Aid Schedule of Expenditures - Budgetary Basis 79

F. Capital Projects Fund:

F-1 Schedules of Revenues, Expenditures, Project Balance, and Project Status -Budgetary Basis 80

F-1a Schedules of Revenues, Expenditures, Project Balance, and Project Status -Budgetary Basis - 2008 Improvements and Renovations - Intermediate School &George J. Mitchell School 81

F-1b Schedules of Revenues, Expenditures, Project Balance, and Project Status -Budgetary Basis - Improvements and Renovations - Intermediate School &George J. Mitchell School 82

G. Proprietary Funds:

Enterprise Funds:G-1 Combining Statement of Net Position 25G-2 Combining Statement of Revenues, Expenses, and

Changes in Fund Net Position 26G-3 Combining Statement of Cash Flows 27

H. Fiduciary Funds:

H-1 Combining Statement of Fiduciary Net Position 83H-2 Combining Statement of Changes in Fiduciary Net Position 84H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements 85H-4 Payroll Agency Fund Schedule of Receipts and Disbursements 86

I. Long-Term Debt:

I-1 Schedule of Serial Bonds 87-88I-2 Schedule of Obligations under Capital Leases 89I-3 Debt Service Fund Budgetary Comparison Schedule 90

TABLE OF CONTENTS (Continued)

Page

STATISTICAL SECTION (Unaudited)

J-1 Net Position by Component 91J-2 Changes in Net Position 92-93J-3 Fund Balances, Governmental Funds 94J-4 Changes in Fund Balances, Governmental Funds 95J-5 General Fund Other Local Revenue by Source 96J-6 Assessed Value and Actual Value of Taxable Property 97J-7 Direct and Overlapping Property Tax Rates 98J-8 Principal Property Tax Payers 99J-9 Property Tax Levies and Collections 100J-10 Ratios of Outstanding Debt by Type 101J-11 Ratios of Net General Bonded Debt Outstanding 102J-12 Direct and Overlapping Governmental Activities Debt 103J-13 Legal Debt Margin Information 104J-14 Demographic and Economic Statistics 105J-15 Principal Employers 106J-16 Full-time Equivalent District Employees by Function/Program 107J-17 Operating Statistics 108J-18 School Building Information 109J-19 Required Maintenance for School Facilities 110J-20 Insurance Schedule 111

SINGLE AUDIT SECTION

K-1 Report on Internal Control over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance withGovernment Auditing Standards 112-113

K-2 Report on Compliance with Requirements Applicable to EachMajor Program and on Internal Control over Compliance inAccordance with OMB Circular A-133 and New Jersey OMB Circular 04-04 114-115

K-3 Schedule of Expenditures of Federal Awards, Schedule A 116K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 117K-5 Notes to Schedules of Awards and Financial Assistance 118-119K-6 Schedule of Findings and Questioned Costs 120-122K-7 Summary Schedule of Prior Audit Findings 122

TABLE OF CONTENTS (Continued)

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INTRODUCTORY SECTION

LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICT Administrative Offices

307 Frog Pond Road • Little Egg Harbor, NJ 08087

Honorable President and Members of the Board of Education Little Egg Harbor Township School District Ocean County, New Jersey

Dear Board Members:

The comprehensive annual financial report of the Little Egg Harbor Township School District for the fiscal year ended June 30, 2015, is hereby submitted. Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with the management of the Little Egg Harbor Township Board of Education. To the best of our knowledge and belief, the data presented in this report is accurate in all material aspects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the District. All disclosures necessary to enable the reader to gain an understanding of the District's financial activities have been included.

The comprehensive annual financial report is presented in four sections: introductory, financial, statistical and single audit. The introductory section includes this transmittal letter, the District's organizational chart and a list of principal officials. The financial section includes the general- purpose financial statements and schedules, as well as the auditor's report thereon. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The District is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget Circular A-133, "Audits of State and Local Governments and Non-Profit Organizations," and the state Treasury Circular Letter 98-07 OMB, "Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid." Information related to this single audit, including the auditor's report on the internal control structure and compliance with applicable laws and regulations and findings and recommendations, is included in the single audit section of this report.

REPORTING ENTITY AND ITS SERVICES: Little Egg Harbor Township School District is an independent reporting entity within the criteria adopted by the GASB as established by NCGA Statement No. 3. All funds and account groups of the District are included in this report.

The District provides a full range of educational services appropriate to grade levels Pre-School through 6. These include regular, as well as special education for handicapped youngsters. The District completed the 2014/2015 fiscal year with an enrollment of 1,622 students, which is 49 students less than the previous year’s enrollment. The following details the changes in the student enrollment of the District over the last fifteen years.

“In order to prepare our children to be productive and responsible citizens, the Mission of the Little Egg Harbor Township School District is to develop and maintain a collaborative and nurturing learning environment fostering individual abilities and encouraging all children to achieve their highest

potential. We expect all children to meet or exceed the grade level benchmarks set forth in the New Jersey Core Curriculum Content Standards (NJCCCS)” 1

December 4, 2015

REPORTING ENTITY AND ITS SERVICES: (continued)

Average Daily Enrollment %Change in

Fiscal Year Ended June 30,

Average Daily Enrollment

Average Daily Attendance

Average Daily Enrollment Attendance %

2000 1552.3 1457.5 2.32 93.9 2001 1761.6 1647.0 13.0 93.5 2002 1744.1 1619.9 1.0 92.9 2003 1729.8 1619.9 (1.0) 93.6 2004 1742.8 1628.5 .75 93.4 2005 1683.8 1567.8 (3.39) 93.1 2007 1693.1 1578.5 .005 93.2 2008 1671.1 1573.1 (.99) 94.1 2009 1799.0 1678.0 1.06 93.3 2010 1829.2 1702.9 1.016 93.1 2011 1859.4 1725.5 1.02 92.8 2012 1792.5 1663.1 (3.64) 92.8 2013 1750.8 1619.7 (2.7) 92.5 2014 1668.9 1571.4 (4.67) 93.8 2015 1613.9 1514.1 (3.63) 93.8

ECONOMIC CONDITION AND OUTLOOK: The Township of Little Egg Harbor encompasses 49.5 square miles and is continuing to experience moderate growth.

Three schools serve the district. The George J. Mitchell School, located on County Road 539, houses children in grades K through 6. The Frog Pond Elementary School, located on Frog Pond Road, houses children in grades K through 6. The Robert C. Wood, Sr. Early Childhood Center, also located on County Road 539, houses Pre-School students.

INTERNAL ACCOUNTING C ONTR OL S: Management of the District is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the District are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that, (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

As a recipient of federal and state financial assistance, the District also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is also subject to periodic evaluation by the District management.

As part of the District's single audit described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal and state financial assistance programs, as well as to determine that the District has complied with applicable laws and regulations. BUDGETARY CONTROLS: In addition to internal accounting controls, the District maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the voters of the municipality. Annual appropriated budgets are adopted for the general fund, the special

2

revenue fund and the debt service fund. Project-length budgets are approved for the capital improvements accounted for in the capital projects fund. The final budget amount as amended for the fiscal year is reflected in the financial section.

An encumbrance accounting system is used to record outstanding purchase commitments on a line item basis. Open encumbrances at year-end are either canceled or are included as re- appropriations o f fund balance in the subsequent year. Those amounts to be reappropriated are reported as reservations of fund balance at June 30, 2015.

ACCOUNTING SYSTEM AND REPORTS: The District’s accounting records reflect generally accepted accounting principles, as promulgated by the Governmental Accounting Standards Boards (GASB). The accounting system of the District is organized on the basis of funds and account groups. These funds and account groups are explained in "Notes to the Financial Statements," Note 1.

CASH MANAGEMENT: The investment policy of the District is guided in large part by state statute as detailed in "Notes to the Financial Statements," Note 2. The District has adopted a cash management plan which requires it to deposit public funds in public depositories protected from loss under the provisions of the Governmental Unit Deposit Protection Act (GUDPA). GUDPA was enacted in 1970 to protect governmental units from a loss of funds on deposit with a failed banking institution in New Jersey. The law requires governmental units to deposit public funds only in public depositories located in New Jersey, where the funds are secured in accordance with the act.

RISK MANAGEMENT: The Board carries various forms of insurance, including but not limited to general l iabi l i ty , automotive l i ab i l i t y and comprehensive/collision, e q u i p m e n t ma in tenance , hazard and theft insurance on property and contents, and fidelity bonds.

OTHER INFORMATION: Independent Audit - State statutes require an annual audit by an independent cert i f ied public accountant or a registered municipal accountant. The accounting firm of Ford, Scott, & Associates, L.L.C. was selected by the Board of Education. In addition to meeting the requirements set forth in state statutes, the audit was also designed to meet the requirements of the Single Audit Act of 1984 and the related OMB Circular A-133 and State Treasury Circular Letter 98-07 OMB. The auditor's report on the general-purpose financial statements and combining and individual fund statements and schedules is included in the financial section of this report. The auditor's reports related specifically to the single audit are included in the single audit section of this report.

ACKNOWLEDGEMENTS: We would like to express our appreciation to the members of the Little Egg Harbor Township School Board for their concern in providing fiscal accountability to the citizens and taxpayers of the school district and t h e r e b y contributing their f u l l support to t h e d e v e l o p m e n t and maintenance of our financial operation. The preparation of this report could not have been accomplished without the efficient and dedicated services of our financial and accounting staff.

Melissa Ann McCooley Jann L. Cohen

Melissa Ann McCooley Jann Cohen Superintendant of Schools Business Administrator/ Board Secretary

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LITTLE EGG HARBOR TOWNSHIP BOARD OF EDUCATION COUNTY OF OCEAN, NEW JERSEY

ROSTER OF OFFICIALS JUNE 30, 2015

Members of the Board of Education Term Expires

John Bellone– President 2016

August Daleo – Vice President 2016

Carmine J. Cimino 2015

Lorraine Perrino 2015

Gina M. Frasca 2017

Matthew Maleski 2015

Martha “June” Palan 2016

Other Officials

Dr. Maryann Banks, Interim Superintendent of Schools through June 30, 2015

Melissa McCooley, Superintendant – Effective July 1, 2015 - Current

Dean Allison, Interim Business Administrator/Board Secretary through October 30, 2014

Jann Cohen, Business Administrator/Board Secretary Effective October 31, 2014 - Current

Patricia Christopher, CPA, Treasurer

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TOWNSHIP OF LITTLE EGG HARBOR BOARD OF EDUCATION CONSULTANTS AND ADVISORS

ARCHITECT

Garrison Architects 406 Lippincott Drive, Suite M

Marlton, NJ 08053

INDEPENDENT AUDITOR

Ford, Scott & Associates, L.L.C. Certified Public Accountants

1535 Haven Avenue P.O. Box 538

Ocean City, New Jersey 08226-0538

ATTORNEY

Amy L. Houck Cooper, Levenson, P.A.

1125 Atlantic Avenue Atlantic City, New Jersey 08401

OFFICIAL DEPOSITORY

Ocean First 425 Route 9 South

Little Egg Harbor, NJ 08087

6

FINANCIAL SECTION

Independent Auditor’s Report

Honorable President and Members of the Board of Education Little Egg Harbor Township School District County of Ocean, New Jersey

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Little Egg Harbor Township School District, in the County of Ocean, New Jersey, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and audit requirements as prescribed by the Office of School Finance, Department of Education, State of New Jersey. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Little Egg Harbor Township School District, as of June 30, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Required Supplementary Information identified in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Little Egg Harbor Township School District’s basic financial statements. The introductory section, combining and individual non-major fund financial statements, schedule of expenditures of federal awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, the schedule of state financial assistance as required by NJ OMB 04-04, and statistical information are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual non-major fund financial statements, schedule of expenditures of federal awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, the schedule of state financial assistance as required by NJ OMB 04-04, and statistical information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual non-major fund financial statements, schedule of expenditures of federal awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, the schedule of state financial assistance as required by NJ OMB 04-04 is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subject to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

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Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 4, 2015 on our consideration of the Little Egg Harbor Township School District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Little Egg Harbor Township School District’s internal control over financial reporting and compliance.

Ford, Scott & Associates, L.L.C. FORD, SCOTT & ASSOCIATES, L.L.C. CERTIFIED PUBLIC ACCOUNTANTS

Michael S. Garcia

Michael S. Garcia Certified Public Accountant Licensed Public School Accountant No. 2080

December 4, 2015

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REQUIRED SUPPLEMENTARY INFORMATION – PART I

LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015

UNAUDITED

The discussion and analysis of Little Egg Harbor Township School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2015. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the basic financial statements and notes to enhance their understanding of the School District's financial performance.

Financial Highlights

Key financial highlights for 2015 are as follows:

In total, net position decreased by $537,800.33, which represents a 10 percent decrease from2014.

General revenues accounted for $22,437,916.59 in revenue or 64 percent of all revenues.Program specific revenues in the form of charges for services and operating grants andcontributions accounted for $12,455,317.99 or 36 percent of total revenues of $34,893,234.58.

Total assets of governmental activities decreased by $1,708,852.44, as cash and cashequivalents decreased by $439,661.32, receivables decreased by $38,327.77 and capital assets(net) decreased by $1,219,018.97.

The School District had $35,431,034.91 in expenses; only $12,455,317.99 of these expenseswas offset by program specific charges for services, grants or contributions. General revenues(primarily taxes) of $22,437,916.59 were adequate to provide for these programs.

Among governmental funds, the General Fund had $23,755,068.87 in revenues and$23,764,751.11 in expenditures. The General Fund's fund balance decreased $189,647.65 over2014.

Using this Comprehensive Annual Financial Report (CAFR)

This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand Little Egg Harbor Township School District as a financial whole, an entire operating entity. The statements then proceed to provide an increasingly detailed look at specific financial activities.

The Statement of Net Position and Statement of Activities provide information about the activities of the whole School district, presenting both an aggregate view of the School district's finances and a longer-term view of those finances. Fund financial statements provide the next level of detail. For governmental funds, these statements tell how services were financed in the short-term as well as what remains for future spending. The fund financial statements also look at the School district's most significant funds with all other non-major funds presented in total in one column. In the case of Little Egg Harbor Township District, the General Fund is by far the most significant fund.

{This section is intentionally left blank}

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UNAUDITED (CONTINUED)

Reporting the School District as a Whole

Statement of Net Position and the Statement of Activities

While this document contains the large number of funds used by the School District to provide programs and activities, the view of the School District as a whole looks at all financial transactions and ask the question, "How did we do financially during 2015?" The Statement of Net Position and the Statement of Activities answer this question. These statements include all assets and liabilities using the accrual basis of accounting similar to the accounting used by most private-sector businesses. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid.

These two statements report the School District's net position and changes in those assets. This change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District have improved or diminished. The cause of this change may be the result of many factors, some financial and some not. Non-financial factors include the School District's property tax base, current laws in New Jersey restricting revenue growth, facility condition, required educational programs and other factors.

In the Statement of Net Position and the Statement of Activities, the School District is divided into two distinct kinds of activities:

Governmental Activities - All of the School District's programs and services are reported hereincluding instruction, support services, operation and maintenance of plant facilities, pupiltransportation and extracurricular activities.

Business-Type Activity - This service is provided on a charge for goods or services basis torecover all the expenses of the goods or services provided. The Food Service and theCommunity School enterprise funds are reported as business activities.

Reporting the School District's Most Significant Funds

Fund Financial Statements

Fund financial reports provide detailed information about the School District's funds. The School District uses many funds to account for a multitude of financial transaction. The School District's governmental funds are the General Fund, Special Revenue Fund, Capital Projects Fund, and Debt Service Fund.

Governmental Funds

The School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in the future years. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School district's general government operations and the basic services it provides. Governmental fund information helps the reader determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements.

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UNAUDITED (CONTINUED) Enterprise Fund The enterprise fund uses the same basis of accounting as business-type activities; therefore, these statements are essentially the same. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the District-wide and fund financial statements. The School District as a Whole Recall that the Statement of Net Position provides the perspective of the School District as a whole. Net position may serve over time as a useful indicator of a government's financial position. The District's financial position is the product of several financial transactions including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. Table 1 provides a summary of the School District's net position for 2015 and 2014.

Table 1 Net Position

2015 2014

AssetsCurrent and Other Assets $ 1,641,761.09 $ 2,031,516.22 Capital Assets 38,067,403.80 39,291,726.23

Total Assets 39,709,164.89 41,323,242.45

Deferred Outflows of ResourcesLoss on Refunding of Long Term Debt 1,204,185.60 Deferred Outflows Related to Pensions 840,048.00

2,044,233.60 - Liabilities

Long-Term Liabilities 27,114,982.71 26,943,756.11 Other Liabilities 9,392,701.29 1,214,428.52

Total Liabilities 36,507,684.00 28,158,184.63

Net PositionInvested in Capital Assets, Net of Debt 14,229,704.17 14,319,213.26 Restricted 995,066.09 1,026,714.22 Unrestricted (10,472,538.77) (2,180,869.66) Total Net Position $ 4,752,231.49 $ 13,165,057.82

The District's combined net position was $4,752,231.49 on June 30, 2015. This was a decrease of 64 percent from the prior year.

12


UNAUDITED (CONTINUED) Table 2 shows changes in net position for fiscal year 2015 and 2014.

Table 2 Changes in Net Position

2015 2014

RevenuesProgram Revenues:

Charges for Services $ 918,197.03 $ 659,478.78 Operating Grants and Contributions 11,537,120.96 6,347,357.33 Capital Grants - 16,470.52

General Revenues:Property Taxes 12,234,233.00 11,772,562.00 Grants and Entitlements 10,032,008.34 12,405,343.08 Other 171,675.25 166,056.64

Total Revenues 34,893,234.58 31,367,268.35

Program ExpensesInstruction 19,074,285.11 16,621,541.98 Support Servces:

Pupils and Instructional Staff 7,785,039.56 6,792,203.26 General Administration and School Administration 2,467,534.20 2,718,123.31 Plant Operations and Maintenance of Facilities 2,079,673.34 2,135,662.65 Pupil Transportation 1,376,090.33 1,302,295.04

Interest on Debt 1,161,340.08 1,049,216.17 Food Service 862,820.35 875,440.45 Community School 363,051.42 274,139.90 Regional Professional Development Academy 261,200.52 76,386.68 Total Expenses 35,431,034.91 31,845,009.44 Increase (Decrease) in Net Position $ (537,800.33) $ (477,741.09)


13


UNAUDITED (CONTINUED) Governmental Activities The District's total governmental revenues were $34,893,234.58 for the year ended June 30, 2015. Property taxes made up 35 percent of revenues for governmental activities for the Little Egg Harbor Township District for fiscal year 2015. Federal, state, and local grants accounted for another 62 percent of revenue. Local Revenue and charges make up 3 percent of the revenue.

The total cost of all governmental programs and services was $33,943,962.62. Instruction comprises 56 percent of District expenses.

14


UNAUDITED (CONTINUED) Business-Type Activities Revenues for the District's business-type activities (food service program) were comprised of charges for services and federal and state reimbursements.

Food service revenue exceed expenses by $7,818.60, Regional Professional Development Academy revenue exceeded expenses by $17,216.48 and the Community School program expenses exceeded revenues by $57,451.07.

Charges for services represent $334,179.68 of revenue. This represents amounts paid by

patrons for daily food service. Charges for Regional Professional Development Academy represent $278,417.00 of revenue. This represents amounts paid by patrons for the Academy. Charges for community school program represent $305,600.35 of revenue. This represents amounts paid by patrons for community school.

Federal and state reimbursement for meals, including payments for free and reduced lunches and

breakfast, and donated commodities was $536,459.27. Governmental Activities The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. The net cost shows the financial burden that was placed on the District's taxpayers by each of these functions.

Table 3

Total Cost of Net Cost of Total Cost of Net Cost ofServices 2015 Services 2015 Services 2014 Services 2014

Instruction $ 19,074,285.11 $ 13,101,147.12 $ 16,621,541.98 $ 14,274,441.31 Support Services:

Pupils and Instructional Staff 7,785,039.56 3,429,719.86 6,792,203.26 3,986,166.46 General Administration and School Administration 2,467,534.20 2,467,534.20 2,718,123.31 2,718,123.31 Operation and Maintenance of Facilities 2,079,673.34 2,079,673.34 2,135,662.65 2,135,662.65 Pupil Transportation 1,376,090.33 1,376,090.33 1,302,295.04 1,302,295.04

Interest and Fiscal Charges 1,161,340.08 489,136.08 1,049,216.17 375,195.17 Other

Total Expenses $ 33,943,962.62 $ 22,943,300.93 $ 30,619,042.41 $ 24,791,883.94

Instruction expenses include activities directly dealing with the teaching of pupils and the interaction between teacher and student, including extracurricular activities. Pupils and instructional staff include the activities involved with assisting staff with the content and process of teaching to students, including curriculum and staff development. General administration, school administration, and business include expenses associated with administrative and financial supervision of the District.

15


UNAUDITED (CONTINUED) Operation and maintenance of facilities involve keeping the school grounds, buildings, and equipment in an effective working condition. Pupil transportation includes activities involved with the conveyance of students to and from school, as well as to and from school activities, as provided by State law. Interest on debt involves the transactions associated with the payment of interest and other related charges to debt of the School District. "Other" includes special schools and unallocated depreciation. The School District's Funds All governmental funds (i.e., general fund, special revenue fund and debt service fund presented in the fund-based statements) are accounted for using the modified accrual basis of accounting. Total revenues amounted to $30,755,858.24 and expenditures were $31,057,417.59. The change in fund balance for the year was a decrease of $301,559.35. As demonstrated by the various statements and schedules included in the financial section of this report, the District continues to meet its responsibility for sound financial management. The following schedules present a summary of the revenues of the governmental funds for the fiscal year ended June 30, 2015, and the amount and percentage of increases and decreases in relation to prior year revenues.

Increase Percent ofPercent of (Decrease) Increase

Revenue Amount Total from 2014 (Decrease)

Local Sources $ 12,423,279.18 40.39% $ 470,244.43 3.93%State Sources 17,567,697.78 57.12% 575,784.35 3.39%Federal Sources 764,881.28 2.49% (460,948.10) -37.60%

Total $ 30,755,858.24 100.00% $ 585,080.68 1.94%

The increase in local revenues of $470,244.43 is predominately due to an increase in taxes. State revenues increased by $575,784.35, predominately due to the increase in TPAF on-behalf contributions. There was a decrease of $460,948.10 in Federal revenues due to a decrease in funds for IDEA and Project Serve grants in 2015.


16


UNAUDITED (CONTINUED) The following schedule represents a summary of general fund, special revenue fund, capital projects fund, and debt service fund expenditures for the fiscal year ended June 30, 2015 and the percentage of increases and decreases in relation to prior year amounts.

Increase Percent ofPercent of (Decrease) Increase

Expenditures Amount Total from 2014 (Decrease)

Current expense:Instruction $ 9,522,236.87 30.66% $ 251,916.24 2.72%Undistributed expenditures 14,152,933.43 45.57% 557,635.75 4.10%

Capital Outlay 226,337.96 0.73% (198,215.21) -46.69%Special Revenues 5,273,021.83 16.98% (61,645.12) -1.16%Debt Service:

Principal 855,000.00 2.75% 25,000.00 3.01%Interest 1,027,887.50 3.31% (35,420.00) -3.33%

Total $ 31,057,417.59 100.00% $ 539,271.66 1.77%

Changes in expenditures were the results of varying factors. Instruction increased due to an increase in expenses related to other purchased services. Undistributed expenditures increased due to an increase in employee benefits. Capital outlay decreased due to construction projects that are currently taking place being nearly complete. General Fund Budgeting Highlights The School District's budget is prepared according to New Jersey law, and is based on accounting for certain transactions on a basis of cash receipts, disbursements, and encumbrances. The most significant budgeted fund is the General Fund. Over the course of the year, the District revised the annual operating budget several times. Revisions in the budget were made to recognize revenues that were not anticipated and to prevent over-expenditures in specific line item accounts.


17


UNAUDITED (CONTINUED) Capital Assets At the end of the fiscal year 2015, the School District had $38,067,403.80 invested in land, building, furniture and equipment, and vehicles. Table 4 shows fiscal year 2015 balances compared to 2014.

Table 4 Capital Assets (Net of Depreciation) at June 30,

2015 2014

Land $ 7,076,100.00 $ 7,076,100.00 Construction in Progress 3,618,294.72 4,191,895.62 Sites, Buildings and

Building Improvements 25,858,418.25 27,140,846.20 Machinery and Equipment 1,514,590.83 882,884.41

Total $ 38,067,403.80 $ 39,291,726.23

Overall, capital assets decreased $1,224,322.43 from fiscal year 2014 to fiscal year 2015. Most of this decrease is attributable to older assets becoming fully depreciated during this audit year. Debt Administration At June 30, 2015, the School District had $27,101,450.73 of outstanding debt. Of this amount, $1,837,946.24 is for compensated absences; $602,001.49 for various capital leases; $1,426,503.00 is for the balance on the premium from the Bond Sale, and $23,235,000.00 of serial bonds for school construction.

Table 5 Outstanding Bonded Debt at June 30,

2015 20142009 General Obligation Bonds $ 6,720,000.00 $ 6,975,000.00 2007 General Obligation Bonds 1,270,000.00 16,950,000.00 1999 General Obligation Bonds - 215,000.00 2015 Refunding Bonds 15,245,000.00 - Total $ 23,235,000.00 $ 24,140,000.00

At June 30, 2015, the School District's was within its legal debt margin. For more detailed information, please refer to the Notes to the Financial Statements. For the Future The Little Egg Harbor Township School District is in good financial condition presently. The School District is proud of its community support of the public schools. The Little Egg Harbor Township School District has committed itself to financial excellence for many years. In addition, the School District's system for financial planning, budgeting, and internal financial controls are well regarded. The School District plans to continue its sound fiscal management to meet the challenge of the future.

18


UNAUDITED (CONTINUED) Contacting the School District's Management This financial report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional information, contact Mrs. Jann Cohen, Business Administrator/Board Secretary at (609) 296-1719, extension 1013 or Melissa Ann McCooley, Superintendent of Schools at (609) 296-1710, extension 1010.

19

BASIC FINANCIAL STATEMENTS

DISTRICT WIDE FINANCIAL STATEMENTS The statement of net position and the statement of activities display information about the District. These statements include the financial activities of the overall District, except for fiduciary activities. Eliminations have been made to minimize the double-counting of internal activities. These statements distinguish between the governmental and business-type activities of the District.

The accompanying Notes to the Financial Statements are an integral part of this statement

A-1

Governmental Business-TypeActivities Activities Total

ASSETSCash and Cash Equivalents 857,251.16$ 122,195.31$ 979,446.47$ Receivables, Net 479,398.64 158,851.40 638,250.04 Internal Balances (12,165.92) 12,165.92 (0.00) Due from Fiduciary Funds - Inventory 24,064.58 24,064.58 Capital Assets, Net

Land 7,076,100.00 7,076,100.00 Capital Assets being Depreciated, net 30,922,431.38 68,872.42 30,991,303.80

Total Assets 39,323,015.26 386,149.63 39,709,164.89

Deferred Outflow of ResourcesLoss on Refunding of Long-Term Debt 1,204,185.60 1,204,185.60 Deferred Outflows Related to Pensions 840,048.00 840,048.00

Total Deferred Outflow of Resources 2,044,233.60 - 2,044,233.60

LIABILITIESAccounts Payable 81,409.45 126,632.68 208,042.13 Unearned Revenue 412,458.38 66,329.93 478,788.31 Accrued Interest 425,207.85 425,207.85 Noncurrent Liabilities

Due Within One Year 1,539,990.65 1,539,990.65 Due Beyond One Year 25,561,460.08 13,531.98 25,574,992.06 Net Pension Liability 8,280,663.00 8,280,663.00

Total Liabilities 36,301,189.41 206,494.59 36,507,684.00

DEFERRED INFLOWS OF RESOURCESDeferred Inflows Related to Pensions 493,483.00 493,483.00

Net PositionInvested in Capital Assets, Net of Related Debt 14,160,831.75 68,872.42 14,229,704.17 Restricted for:

Other Purposes 995,066.09 995,066.09 Unrestricted (10,583,321.39) 110,782.62 (10,472,538.77)

Total Net Position 4,572,576.45$ 179,655.04$ 4,752,231.49$

Statement of Net PositionLITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICT

June 30, 2015

20

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21

FUND FINANCIAL STATEMENTS The individual fund financial statements present more detailed information for the individual funds in a format that segregates information by fund type.


B-1

Special Capital Debt TotalGeneral Revenue Projects Service Governmental

Fund Fund Fund Fund FundsASSETS

Cash and Cash Equivalents 114,579.96$ 325,994.31$ 392,138.35$ 24,538.54$ 857,251.16$ Receivables from Other Governments 348,978.71 113,695.27 462,673.98 Due from Other Funds 155,650.17 2,394.09 308.91 158,353.17 Other Receivables 16,724.66 16,724.66

Total Assets 635,933.50$ 442,083.67$ 392,138.35$ 24,847.45$ 1,495,002.97$

LIABILITIES AND FUND BALANCESLiabilities:

Accounts Payable 51,784.16$ 29,625.29$ -$ -$ 81,409.45$ Interfund Payable 170,519.09 170,519.09 Unearned Revenue 412,458.38 412,458.38

Total Liabilities 51,784.16 442,083.67 170,519.09 - 664,386.92

Fund Balances:Restricted Fund Balance:

Excess Surplus: Current Year 401,347.18 401,347.18 Designated for Subsequent

Year's Expenditures 481,733.48 481,733.48 Capital Projects 195,384.76 195,384.76

Committed Fund Balance:Debt Service 24,847.45 24,847.45 Capital Reserve 8,092.43 8,092.43 Emergency Reserve 38,293.00 38,293.00 Maintenance Reserve 65,600.00 65,600.00 Other Purposes 26,234.50 26,234.50

Assigned Fund Balance:Other Purposes 123,839.04 123,839.04 Designated for Subsequent Year's Expenditures - -

Unassigned Fund Balance (Deficit) (534,755.79) - (534,755.79)

Total Fund Balances 584,149.34 - 221,619.26 24,847.45 830,616.05

Total Liabilities and Fund Balances 635,933.50$ 442,083.67$ 392,138.35$ 24,847.45$

Amounts reported for governmental activities in the statement ofNet Position (A-1) are different because:

Capital assets used in governmental activities are not financialresources and therefore are not reported in the governmentalfunds. The cost of the assets is $53,794,257.36 and theaccumulated depreciation is $15,795,725.98. 37,998,531.38

Deferred amount on refunding and premiums on bonds arereported in the governmental fund as expenditures in theyear the bonds are issued but are amortized over the life

on the bonds on the statement of activities. (1,426,503.00)

Interest on long-term debt in the statement of activities is accrued, regardless of when due. (425,207.85)

Pension Liabilities Net of Deferred Outflows & Inflows (7,934,098.00)

Long-term liabilities, including bonds payable, are not due andpayable in the current period and therefore are notreported as liabilities in the funds. (24,470,762.13)

Net Position of governmental activities 4,572,576.45$

Governmental FundsBalance Sheet

LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICT

June 30, 2015

22


B-2

Special Capital Debt TotalGeneral Revenue Projects Service Governmental

Fund Fund Fund Fund FundsREVENUES

Local Sources:Local Tax Levy 11,023,550.00$ 1,210,683.00$ 12,234,233.00$ Miscellaneous 170,801.67 17,645.97 598.54 - 189,046.18

Total Local Sources 11,194,351.67 17,645.97 598.54 1,210,683.00 12,423,279.18 State Sources 12,510,916.86 4,384,576.92 672,204.00 17,567,697.78 Federal Sources 49,800.34 715,080.94 764,881.28

Total Revenues 23,755,068.87 5,117,303.83 598.54 1,882,887.00 30,755,858.24

EXPENDITURESCurrent:

Regular Instruction 6,012,060.25 2,242,483.47 8,254,543.72 Special Education Instruction 2,847,852.42 2,847,852.42 Other Special Instruction 662,324.20 662,324.20 Support Services:

Tuition 13,398.78 13,398.78 Student & Instruction Related Serv. 2,140,835.56 3,030,538.36 5,171,373.92 School Administrative Services 616,879.84 616,879.84 General and Business Admin Services 1,239,137.58 1,239,137.58 Plant Operation and Maintenance 1,564,278.20 1,564,278.20 Pupil Transportation 1,376,090.33 1,376,090.33 Employee Benefits 7,202,313.14 7,202,313.14

Debt Service:Principal 855,000.00 855,000.00 Interest and Other Charges 1,027,887.50 1,027,887.50

Capital Outlay 89,580.81 - 136,757.15 226,337.96

Total Expenditures 23,764,751.11 5,273,021.83 136,757.15 1,882,887.50 31,057,417.59

Excess (Deficiency) of RevenuesOver Expenditures (9,682.24) (155,718.00) (136,158.61) (0.50) (301,559.35)

OTHER FINANCING SOURCES (USES)Transfer in 598.54 155,718.00 24,845.95 181,162.49 Transfer out (180,563.95) (598.54) (181,162.49)

Total Other Financing Sources and Uses (179,965.41) 155,718.00 (598.54) 24,845.95 -

Net Changes in Fund Balance (189,647.65) - (136,757.15) 24,845.45 (301,559.35)

Fund Balance - July 1 773,796.99 - 358,376.41 2.00 1,132,175.40

Fund Balance - June 30 584,149.34$ -$ 221,619.26$ 24,847.45$ 830,616.05$

Governmental FundsStatement of Revenues, Expenditures, and Changes in Fund Balance


For the Year Ended June 30, 2015

23


B-3

Total Net Change in Fund Balance - Governmental Funds (from B-2) (301,559.35)$

Amounts reported for governmental activities in the statement ofactivities (A-2) are different because:

Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation exceededcapital outlays in the period.

Depreciation Expense (1,445,356.93)$ Capital Outlay 226,337.96

(1,219,018.97)

However in the Statement of Activities, the cost of pension benefits earnednet of employee contributions is reported as pension expense.

District pension contributions - PERS 364,608.00 Cost of benefits earned net of employee contributions (423,680.00)

(59,072.00) Proceeds from debt issues are a financing source in the governmental funds.

They are not a revenue in the statement of activities; issuing debt increaseslong - term liabilities in the statement of Net Position.

Lease Purchase Proceeds (29,619.60)

Repayment of bond principal is an expenditure in the governmental funds, but therepayment reduces long-term liabilities in the statement of Net Position and is notreported in the statement of activities.

Serial Bonds 855,000.00 Capital Lease Payments 618,507.49

1,473,507.49

In the statement of activities, the cost of issuance on the refunding of bondsis reported as an expense. The amount does not affect the fund financialstatements. (172,317.40)

In the statement of activities, certain operating expenses, e.g., compensatedabsences (vacation and sick pay) are measured by the amounts earned during theyear. In the governmental funds, however, expenditures for these items are reportedin the amount of financial resources used (paid). When the earned amount exceeds the paid amount, the difference is a reduction in the reconciliation;when the paid amount exceeds the earned amount, the difference is an additionto the reconciliation. (236,444.37)

In the statement of activities, interest on long-term debt is accrued, regardless of whendue. In the governmental funds, interest is reported when due. The accrued interestis a deduction in the reconciliation. 38,864.82

Change in Net Position of Governmental Activities (505,659.38)$

LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICTReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance

of Governmental Funds to the Statement of ActivitiesFor the Year Ended June 30, 2015

24


B-4

RegionalProfessional

Food Community DevelopmentService School Academy Totals

ASSETSCurrent Assets:

Cash and Cash Equivalents 37,651.76$ 69,238.55$ 15,305.00$ 122,195.31$ Accounts Receivable 47,184.60 11,811.80 99,855.00 158,851.40 Interfunds 5,104.75 8,066.48 13,171.23 Inventory 24,064.58 24,064.58

Total Current Assets 114,005.69 89,116.83 115,160.00 318,282.52

Noncurrent Assets:Furniture, Machinery & Equipment 284,534.31 - 284,534.31

Less: Accumulated Depreciation (215,661.89) - (215,661.89)

Total Noncurrent Assets 68,872.42 - - 68,872.42

Total Assets 182,878.11$ 89,116.83$ 115,160.00$ 387,154.94$

LIABILITIESCurrent Liabilities:

Interfund Accounts Payable -$ -$ 1,005.31$ 1,005.31$ Accounts Payable 37,735.26 419.38 88,478.04 126,632.68 Unearned Revenue 5,873.49 60,456.44 66,329.93

Total Current Liabilities 43,608.75 60,875.82 89,483.35 193,967.92

Noncurrent Liabilities:Compensated Absences 13,531.98 13,531.98

Total Noncurrent Liabilities 13,531.98 - - 13,531.98

Net PositionInvested in Capital Assets Net of

Related Debt 68,872.42 - - 68,872.42 Unrestricted 56,864.96 28,241.01 25,676.65 110,782.62

Total Net Position 125,737.38$ 28,241.01$ 25,676.65$ 179,655.04$


June 30, 2015

Enterprise FundBusiness-Type Activities -

Statement of Net PositionProprietary Funds

25


B-5


Food Community Development TotalsService School Academy Enterprise

Operating Revenues:Charges for Services:

Daily Sales - Reimburseable Programs 161,850.24$ 161,850.24$ Daily Sales - Other 172,329.44 172,329.44 Workshop Fees 278,417.00 278,417.00 Fees 305,600.35 305,600.35

Total Operating Revenue 334,179.68 305,600.35 278,417.00 918,197.03

Operating Expenses:Cost of Sales 439,898.32 439,898.32 Salaries 279,565.61 270,280.48 18,015.00 567,861.09 Employee Benefits 68,093.54 49,778.07 11,367.79 129,239.40 Management Fee 47,893.21 47,893.21 Purchased Services 25,955.59 206,927.80 232,883.39 Rentals 5,255.00 5,255.00 Supplies 1,763.54 12,776.88 19,211.41 33,751.83 Miscellaneous 20,302.67 4,260.40 423.52 24,986.59 Depreciation 5,303.46 5,303.46

Total Operating Expenses 862,820.35 363,051.42 261,200.52 1,487,072.29 Operating (Loss) (528,640.67) (57,451.07) 17,216.48 (568,875.26)

Nonoperating Revenues (Expenses):State Sources:

State School Breakfast Program - State School Lunch Program 9,322.69 9,322.69

Federal Sources:National School Breakfast Program 128,216.25 128,216.25 National School Lunch Program 344,584.00 344,584.00 Food Distribution Program 54,336.33 54,336.33

Contributed Capital - Interest and Investment Income 89.36 133.13 52.55 275.04

Total Nonoperating Revenues (Expenses) 536,548.63 133.13 52.55 536,734.31

(Loss) before Contributions & Transfers 7,907.96 (57,317.94) 17,269.03 (32,140.95) Fixed Asset AdjustmentTransfer from General Fund -

Changes in Net Position 7,907.96 (57,317.94) 17,269.03 (32,140.95)

Total Net Position - Beginning 117,829.42 85,558.95 8,407.62 211,795.99 Total Net Position - Ending 125,737.38$ 28,241.01$ 25,676.65$ 179,655.04$




Statement of Revenues, Expenses, and Changes in Fund Net PositionProprietary Funds

26


B-6


Food Community Development TotalsService School Academy Enterprise

CASH FLOWS FROM OPERATING ACTIVITIESReceipts from Customers 327,155.48$ 308,708.31$ 178,562.00$ 814,425.79$ Payments to Employees (277,398.49) (270,280.48) (18,015.00) (565,693.97) Payments for Employee Benefits (81,667.57) (49,279.10) (11,142.92) (142,089.59) Payments to Suppliers (481,942.32) (42,858.30) (142,334.38) (667,135.00)

Net Cash Provided by (Used for) OperatingActivities (513,852.90) (53,709.57) 7,069.70 (560,492.77)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESState Sources 9,775.11 9,775.11 Federal Sources 535,726.53 535,726.53 Operating Subsidies and Transfers to Other Funds -

Net Cash Provided by (Used for) NoncapitalFinancing Activities 545,501.64 - - 545,501.64

CASH FLOW FROM INVESTING ACTIVITIESInterest and Dividends 89.36 133.13 52.55 275.04

Net Cash Provided by (Used for) InvestingActivities 89.36 133.13 52.55 275.04

Net Increase (Decrease) in Cash and CashEquivalents 31,738.10 (53,576.44) 7,122.25 (14,716.09)

Balance - Beginning of Year 5,913.66 122,814.99 8,182.75 136,911.40 Balance - End of Year 37,651.76$ 69,238.55$ 15,305.00$ 122,195.31$

Reconciliation of Operating Income (Loss) to NetCash Provided (Used) by Operating Activities:

Operating (Loss) (528,640.67)$ (57,451.07)$ 17,216.48$ (568,875.26)$ Adjustments to Reconcile Operating Income (Loss) toNet Cash Provided by (Used for) Operating Activities:

Depreciation 5,303.46 5,303.46 Increase (Decrease) in Unearned Revenue (6,153.79) 10,785.87 4,632.08 (Increase) Decrease in Accounts Receivable (870.41) (7,677.91) (99,855.00) (108,403.32) Increase (Decrease) in Accounts Payable 31,504.02 134.57 88,478.04 120,116.63 Increase (Decrease) in Interfunds Payable (13,574.03) 498.97 1,230.18 (11,844.88) (Increase) Decrease in Inventories (3,588.60) (3,588.60) Increase (Decrease) in Accrued Salaries Benefits 2,167.12 2,167.12

Total Adjustments 14,787.77 3,741.50 (10,146.78) 8,382.49 Net Cash Provided by (Used for) Operating

Activities (513,852.90)$ (53,709.57)$ 7,069.70$ (560,492.77)$




Statement of Cash FlowsProprietary Funds

27


B-7

Unemployment AgencyCompensation Fund

ASSETSCash and Cash Equivalents 131,064.07$ 324,947.11$ Prepaid Unemployment 3,565.72

Total Assets 134,629.79 324,947.11

LIABILITIESSummer Savings 114,632.00 Payable to Student Groups 51,879.04 Payroll Deductions and Withholdings 158,436.07

Total Liabilities - 324,947.11

Net PositionHeld in Trust for Unemployment

Claims and Other Purposes 134,629.79$

Statement of Net PositionFiduciary Funds


June 30, 2015

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B-8

UnemploymentCompensation

ADDITIONSContributions:

Plan Member 29,584.08$ Prior Year's Claims Disallowed 3,565.72

Total Contributions 33,149.80

Investment Earnings:Interest 153.60

Total Additions 33,303.40

DEDUCTIONSUnemployment Claims 2,055.74

Total Deductions 2,055.74

Changes in Net Position 31,247.66

Net Position - Beginning of the Year 103,382.13

Net Position - End of the Year 134,629.79$

Statement of Changes in Fiduciary Net PositionFiduciary Funds



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LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Little Egg Harbor Township School District is an instrumentality of the State of New Jersey, established to function as an educational institution. The Board consists of elected officials and is responsible for the fiscal control of the District. A superintendent is appointed by the Board and is responsible for the administrative control of the District. The financial statements of the Board of Education (Board) of Little Egg Harbor Township School District (District) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Board’s accounting policies are described below. A. Reporting Entity The District is an instrumentality of the State of New Jersey, established to function as an educational institution. The Board consists of elected officials and is responsible for the fiscal control of the District. A superintendent is appointed by the Board and is responsible for the administrative control of the District. The purpose of the district is to educate students in grades Pre-K-6. The District operates an elementary and intermediate school located in Little Egg Harbor Township. The primary criterion for including activities within the District’s reporting entity, as set forth in Section 2100 of the GASB Codification of Governmental Accounting and Financial Reporting Standards, is whether:

• the organization is legally separate (can sue or be sued in their own name); • the District holds the corporate powers of the organization; • the District appoints a voting majority of the organization’s board; • the District is able to impose its will on the organization; • the organization has the potential to impose a financial benefit/burden on the District; • there is a fiscal dependency by the organization on the District;

Based on the aforementioned criteria, the District has no component units. B. Basis of Presentation, Measurement Focus and Basis of Accounting Basis of Presentation The School District’s basic financial statements consist of District-wide statements (i.e. statement of net position and a statement of activities) and fund financial statements, which provide a more detailed level of financial information. District-Wide Financial Statements: The statement of net position and the statement of activities display information about the district as a whole. These statements report the financial activities of the overall District, except for fiduciary activities. Individual funds are not displayed but the statements distinguish governmental activities, generally supported by property taxes, intergovernmental revenues, and other non-exchange transactions from business-type activities, generally financed in whole or in part with fees charged to external parties.

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FOR THE YEAR ENDED JUNE 30, 2015

The statement of net position presents the financial condition of the governmental and business-type activity of the School District at fiscal year end. The statement of activities presents a comparison between direct expenses and program revenues for the business-type activity of the District and for each function of the District’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges and fees paid by the recipients of goods or services offered by the programs; and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including taxes, are presented as general revenues. The comparison of direct expenses with program revenues identifies the extent to which each governmental function or business segment is self-financing, or draws from the general revenues of the School District. Fund Financial Statements: During the fiscal year, the School District segregates transactions related to certain School District functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. The fund financial statements provide information about the District’s funds, including its fiduciary funds. Separate statements for each fund category – governmental, proprietary, and fiduciary - are presented. The New Jersey Department of Education (“Department”) has elected to require New Jersey districts to treat each governmental fund as a major fund in accordance with the option noted in GASB No. 34, paragraph 76. The Department believes that the presentation of all funds as major is important for public interest and to promote consistency among district financial reporting models. Governmental Funds The District reports the following governmental funds:

General Fund - The General Fund is the general operating fund of the District and is used to account for all expendable financial resources except those required to be accounted for in another fund. Included are certain expenditures for vehicles and movable instructional or non-instructional equipment, which are classified in the capital outlay sub-fund. As required by the New Jersey State Department of Education, the District includes budgeted capital outlay in this fund. Generally accepted accounting principles, as they pertain to governmental entities, state that general fund resources may be used to directly finance capital outlays for long-lived improvements as long as the resources in such cases are derived exclusively from unrestricted revenues. Resources for budgeted capital outlay purposes are normally derived from State of New Jersey Aid, district taxes and appropriated fund balance. Expenditures are those that result in the acquisition of or additions to fixed assets for land, existing buildings, improvements of grounds, construction of buildings, additions to or remodeling of buildings and the purchase of built-in equipment. These resources can be transferred from and to Current Expense by board resolution.

Special Revenue Fund - The Special Revenue Fund is used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

Capital Projects Fund - The Capital Projects Fund is used to account for all financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). The financial resources are derived from temporary notes or serial bonds that are specifically authorized by the voters as a separate question on the ballot either during the annual election or at a special election.

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Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, principal and interest on bonds issued to finance major property acquisition, construction and improvement programs.

Proprietary Funds The District reports the following proprietary fund:

Enterprise Funds - Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business operations – where the intent of the District is that the costs of providing goods or services be financed or recovered primarily through user charges. The District's Enterprise Funds are comprised of the Food Service Fund, which accounts for all revenues and expenses pertaining to the District’s cafeteria operations, the Community School Fund, which accounts for all revenues and expenses pertaining to the District’s community school program operations and the Regional Professional Development Academy Fund.

Fiduciary Funds

Trust and Agency Funds - The Trust and Agency Funds are used to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments and/or other funds. The District’s fiduciary funds are presented in the fiduciary fund financial statements by type (pension, private purpose and agency). Since by definition these assets are being held for the benefit of a third party (other local governments, private parties, pension participants, etc.), and cannot be used to address activities or obligations of the government, these funds are not incorporated into the government-wide statements.

All fund internal activity is eliminated when carried to the Government-wide statements.

Expendable Trust Fund - An Expendable Trust Fund is accounted for in essentially the same manner as the governmental fund types, using the same measurement focus and basis of accounting. Expendable Trust Funds account for assets where both the principal and interest may be spent. Expendable Trust Funds include the Unemployment Compensation Insurance Trust.

Agency Funds - Agency funds are used to account for the assets that the District holds on behalf of others as their agent. Agency funds are custodial in nature and do not involve measurement of results of operations. Agency funds include payroll and student activities funds.

{This space intentionally left blank}

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Measurement Focus and Basis of Accounting Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. The District-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary fund and the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year in which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Net position (total assets less total liabilities) is used as a practical measure of economic resources and the operating statement includes all transactions and events that increased or decreased net position. Depreciation is charged as expense against current operations and accumulated depreciation is reported on the statement of net position. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available is they are collected within 60 days of the end of the fiscal year. Revenue from federal, state and other grants designated for payment of specific school district expenditures is recognized when the related expenditures are incurred; accordingly, when such funds are received, they are recorded as unearned revenues until earned. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. Annual appropriated budgets are prepared in the spring of each year for the general, special revenue, and debt service funds. The budgets are submitted to the county office for approval and are voted upon at the annual school election on the third Tuesday in April. Budgets are prepared using the modified accrual basis of accounting, except for special revenue funds. The legal level of budgetary control is established at line item accounts within each fund. Line item accounts are defined as the lowest (most specific) level of detail as established pursuant to the minimum chart of accounts referenced in N.J.A.C. 6A:23-2.2(g). All budget amendments/transfer must be approved by School Board resolution. All budget amounts presented in the accompanying supplementary information reflect the original budget and the amended budget (which have been adjusted for legally authorized revisions of the annual budgets during the year.


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Significant transfers approved by the Board of Education during the fiscal year were as follows: Regular Program - Instruction

Grades 1 - 5 - Salaries of Teachers (25,147.32) Grades 6 - 8 - Salaries of Teachers 56,390.80 General Supplies (41,468.44) Other Purchased Services 76,551.42

Special Education - InstructionAutism - Other Salaries for Instruction (29,548.56)

Undistributed ExpendituresSalaries of Supervisors of Instruction 35,413.62 General Admin - Salaries (36,679.34) General Admin - Legal Services 64,855.40 General Admin - Other Purchased Professional Services (29,273.46) General Admin - Other Purchased Services 38,883.80 Support Services - School Admin - Salaries of Principals/Asst. (68,587.04) Required Maintenance School Facilities - Salaries 103,269.36 Care & Upkeep of Grounds - Salaries (111,556.87) Student Transportation Services - Contr. Serv. - (Bet. Home & School) Jo (42,600.00)

Unallocated BenefitsSocial Security Contribution 62,782.28 Health Benefits (176,484.57)

Capital Outlay - Facilities Acquisition and Construction ServicesConstruction Services 97,600.00

Appropriations, except remaining project appropriations, encumbrances and unexpended grant appropriations, lapse at the end of each fiscal year. The capital projects fund presents the remaining project appropriations compared to current year expenditures. Formal budgetary integration into the accounting system is employed as a management control device during the year. For governmental funds, there are no substantial differences between the budgetary basis of accounting and generally accepted accounting principles with the exception of the legally mandated revenue recognition of the last state aid payment for budgetary purposes only and the special revenue fund as noted below. Encumbrance accounting is also employed as an extension of formal budgetary integration in the governmental fund types. Unencumbered appropriations lapse at fiscal year- end. The accounting records of the special revenue fund are maintained on the grant accounting budgetary basis. The grant accounting budgetary basis differs from GAAP in that the grant accounting budgetary basis recognizes encumbrances as expenditures and also recognizes the related revenues, whereas the GAAP basis does not. Sufficient supplemental records are maintained to allow for the presentation of GAAP basis financial reports.


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D. Encumbrance Accounting Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of resources are recorded to reserve a portion of the applicable appropriation. Open encumbrances in governmental funds other than the special revenue fund are reported as reservations of fund balances at fiscal year end as they do not constitute expenditures or liabilities but rather commitments related to unperformed contracts for goods and services. Open encumbrances in the special revenue fund for which the District has received advances are reflected in the balance sheet as unearned revenues at fiscal year-end. The encumbered appropriation authority carries over into the next fiscal year. An entry will be made at the beginning of the next fiscal year to increase the appropriation reflected in the certified budget by the outstanding encumbrance amount as of the current fiscal year-end. E. Assets, Liabilities and Equity Cash, Cash Equivalents and Investments Cash and cash equivalents include petty cash, change funds, bank deposits and all highly liquid investments with a maturity of three months or less at the time of purchase and are stated at cost plus accrued interest. U.S. Treasury and agency obligations and certificates of deposit with maturities of one year or less when purchased are stated at cost. All other investments are stated at fair value. New Jersey school districts are limited as to the types of investments and types of financial institutions they may invest in. New Jersey statute 18A:20-37 provides a list of permissible investments that may be purchased by New Jersey school districts. Additionally, the District has adopted a cash management plan that requires it to deposit public funds in public depositories protected from loss under the provisions of the Governmental Unit Deposit Protection Act ("GUDPA"). GUDPA was enacted in 1970 to protect governmental units from a loss of funds on deposit with a failed banking institution in New Jersey. N.J.S.A. 17:9-41 et. seq. establishes the requirements for the security of deposits of governmental units. The statute requires that no governmental unit shall deposit public funds in a public depository unless such funds are secured in accordance with the Act. Public depositories include savings and loan institutions, banks (both state and national banks) and savings banks the deposits of which are federally insured. All public depositories must pledge collateral, having a market value at least equal to five percent of the average daily balance of collected public funds, to secure the deposits of Governmental Units. If a public depository fails, the collateral it has pledged, plus the collateral of all other public depositories, is available to pay the full amount of their deposits to the governmental units. Inter-fund Transactions Transfers between governmental and business-type activities on the District-wide statements are reported in the same manner as general revenues. Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds and after non-operating revenues/expenses in the Enterprise Fund. Repayments from funds responsible for particular expenditure/expenses to the funds that initially paid for them are not presented on the financial statements.

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Inventories Inventories, other than those recorded in the enterprise fund, are recorded as expenditures during the year of purchase. Inventories in the Enterprise Fund are recorded at cost, computed on a first-in, first out method. In the fund based financial statements, commodities received from the U.S. Department of Agriculture are recorded as unearned revenue until consumed. Capital Assets The District has established a formal system of accounting for its capital assets. Purchased or constructed capital assets are reported at cost. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. The capitalization threshold used by school districts in the State of New Jersey is $2,000. All reported capital assets except for land and construction in progress are depreciated. Depreciation is computed using the straight-line method over their estimated useful lives. Useful lives vary from 20 to 50 years for land improvements and buildings, and 5 to 15 years for equipment. The District does not possess any material amounts of infrastructure capital assets, such as sidewalks and parking lots. Such items are considered to be part of the cost of buildings or other improvable property. Compensated Absences The District accounts for compensated absences (e.g., unused sick, vacation leave) as directed by Governmental Accounting Standards Board Statement No. 16 (GASB 16), “Accounting for Compensated Absences”. A liability for compensated absences that are attributable to services already rendered, and that are not contingent on a specific event that is outside the control of the District and its employees, is accrued as the employees earn the rights to the benefits. Compensated absences that relate to future services, or that are contingent on a specific event that is outside the control of the District and its employees, are accounted for in the period in which such services are rendered or in which such events take place. District employees are granted varying amounts of vacation and sick leave in accordance with the District’s personnel policies. Upon termination, employees are paid for accrued vacation. The District’s policy permits employees to accumulate unused sick leave and carry forward the full amount to subsequent years. Upon retirement, employees shall be paid by the District for the unused sick leave in accordance with the District’s agreements with the various employee unions. The liability for compensated absences was accrued using the termination payment method, whereby the liability is calculated based on the amount of sick leave that is expected to become eligible for payment upon termination. The District estimates its accrued compensated absences liability based on the accumulated sick and vacation days at the balance sheet date by those employees who are currently eligible to receive termination payments. For the District-wide Statements, the current portion is the amount estimated to be used in the following year. In accordance with GAAP, for the governmental funds, in the Fund Financial Statements, all of the compensated absences are considered long-term and therefore, are not a fund liability and represents a reconciling item between the fund level and District-wide presentations.

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Unearned Revenue Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received in the Special Revenue Fund before they have been earned are recorded as unearned revenue. Accrued Liabilities and Long-Term Obligations All payables, accrued liabilities, and long-term obligations are reported on the District-wide financial statements. In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources are reported as obligations of the funds. However, contractually required pension contributions and compensated absences that are paid from governmental funds are reported as liabilities on the fund financial statements only to the extent that they are due for payment during the current year. Bonds are recognized as a liability on the fund financial statements when due. Net Position Net position represents the difference between assets and liabilities. Net position invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets. Net position are reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the School District, or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The School District’s policy is to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position are available. Fund Balance The School District reports fund balance in classifications that comprise a hierarchy based primarily on the extent to which the School District is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The School District’s classifications, and policies for determining such classifications, are as follows:

• Non-spendable – The nonspenable fund balance classification includes amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, such as inventories and prepaid amounts.

• Restricted - The restricted fund balance classification includes amounts that are restricted to

specific purposes. Such restrictions, or constraints, are placed on the use of resources either by being (1) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (2) imposed by law through constitutional provisions or enabling legislation.

• Committed – The committed fund balance classification includes amounts that can only be used

for specific purposes pursuant to constraints imposed by formal action of the School District’s highest level of decision-making authority, which, for the School District, is the Board of Education. Such formal action consists of an affirmative vote by the Board of Education, memorialized by the adoption of a resolution. Once committed, amounts cannot be used for any other purpose unless the Board of Education removes, or changes, the specified use by taking the same type of action (resolution) it employed to previously commit those amounts.

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• Assigned – The assigned fund balance classification includes amounts that are constrained by the School District’s intent to be used for specific purposes, but are neither restricted nor committed.

• Unassigned – The unassigned fund balance classification is the residual classification for the

general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund.

When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, it is the policy of the School District to spend restricted fund balances first. Moreover, when an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications can be used, it is the policy of the School District to spend fund balances, if appropriate, in the following order: committed, assigned, then unassigned. Revenues – Exchange and Nonexchange Transactions Revenues resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On the modified accrual basis, revenue is recorded in the fiscal year in which the resources are measurable and become available. Available means the resources will be collected within the current fiscal year, or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the District, available means within sixty days of the fiscal year end. Nonexchange transactions, in which the School District receives value without directly giving equal value in return, include property taxes, grants, entitlements and donations. On the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from income taxes is recognized in the period in which the income is earned. Revenue from grants, entitlement, and donations is recognized in the period in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the fiscal year when use is first permitted; matching requirements, in which the School District must provide local resources to be used for a specific purpose; and expenditure requirements, in which the resources are provided to the School District on a reimbursement basis. On the modified accrual basis, revenue from nonexchange transactions must also be available before it can be recognized. Under the modified accrual basis, the following revenue sources are considered to be both measurable and available at fiscal year end: property taxes as an advance, interest and tuition. Operating Revenues and Expenses Operating revenues are those revenues that are generated directly from the primary activity of the enterprise fund. For the School District, these revenues are sales for food service. Operating expenses are necessary costs incurred to provide the service that is the primary activity of the enterprise fund.


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Allocation of Indirect Expenses The District reports all direct expenses by function in the Statement of Activities. Direct expenses are those that are clearly identifiable with a function. Indirect expenses are allocated to functions but are reported separately in the Statement of Activities. Employee benefits, including the employer’s share of social security, workers compensation, and medical and dental benefits, were allocated based on salaries of that program. Depreciation expense, where practicable, is specifically identified by function and is included in the direct expense column of the Statement of Activities. Depreciation expense that could not be attributed to a specific function is considered an indirect expense and is reported separately on the Statement of Activities. Interest on long-term debt is considered an indirect expense and is reported separately on the Statement of Activities. Extraordinary and Special Items Extraordinary items are transactions or events that are unusual in nature and infrequent in occurrence. Special items are transactions or events that are within control of management and are either unusual in nature or infrequent in occurrence. Neither of these types of transactions occurred during the fiscal year. Management Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. E. Accounting Changes Change in Accounting Principles – No restatement of balances was required as the result of implementing Governmental Accounting Standards Board (GASB) Statement Nos. 63 and 65, however the implementation of GASB No. 63 also resulted in a terminology change, which was retroactively applied, renaming all “Net Assets” to “Net Position”. Further, as a result of implementing GASB No. 65, the terminology of Deferred Revenue was replaced with Unearned Revenue. The terminology changes had no impact on the financial status or results of operations in the District.


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G. Recent Accounting Pronouncements Not Yet Effective In February 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 72, “Fair Value Measurement and Application”. This statement is effective for fiscal periods beginning after June 15, 2015, will not have any effect on the District’s financial reporting. In June 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 73, “Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68”. This statement is effective for fiscal periods beginning after June 30, 2016, will not have any effect on the District’s financial reporting. In June 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 74, “Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans”. This statement is effective for fiscal periods beginning after June 30, 2016, establishes new accounting and financial reporting requirements for OPEB plans. It is anticipated that this statement will not have any effect on the District’s financial reporting. In June 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions”. This statement is effective for fiscal periods beginning after June 30, 2017. Although not determinable, the impact of this statement on the net position of the entity is anticipated to be significant. In June 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 76, “The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments”. This statement is effective for fiscal periods beginning after June 30, 2015, will not have any effect on the District’s financial reporting. NOTE 2 – CONTINGENT LIABILITIES Federal and State Grants The District participates in a number of federal and state grant programs. The grant programs are subject to program compliance audits by the grantors or their representatives. The District is potentially liable for expenditures which may be disallowed pursuant to the terms of these grant programs. Management is not aware of any material items of noncompliance would result in the disallowance of program expenditures.


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NOTE 3 – CASH, CASH EQUIVALENTS AND INVESTMENTS Custodial Credit Risk Related to Deposits - Custodial credit risk is the risk that, in the event of a bank failure, the School District’s deposits might not be recovered. Although the School District does not have a formal policy regarding custodial credit risk, N.J.S.A. 17:9-41 et seq. requires that governmental units shall deposit public funds in public depositories protected from loss under the provisions of the Governmental Unit Deposit Protection Act. Of the School District’s bank balance of $1,730,657.44 as of June 30, 2015, $630,103.96 was uninsured and uncollateralized. Investments Pursuant to state statutes, the District may invest in the following:

Direct obligations of, or obligations as to which the principal and interest is guaranteed by, the United States of America

Government money market mutual funds

Any obligation that a federal agency or a federal instrumentality has issued in accordance

with an act of Congress

Bonds or obligations of the local unit or other obligations of school districts within the local unit

Local government investment pools

State of New Jersey Cash Management Fund

Agreements for the repurchase of fully collateralized securities

At June 30, 2015, the District had no investments.

Custodial Credit Risk – For an investment, custodial credit risk is the risk that in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The District does not have a policy for custodial credit risk. Credit Risk – The District does not have an investment policy regarding the management of credit risk. GASB 40 requires that disclosure be made as to the credit rating of all debt security investments except for obligations of the U.S. government or investments guaranteed by the U.S. government. Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Investments held for longer periods are subject to increased risk of adverse interest rate changes. The District does not have a policy to limit interest rate risk. All of the District’s investments have a maturity of less than one year.

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NOTE 4 – RECEIVABLES Receivables at June 30, 2015 consisted of accounts (tuition), interfund, intergovernmental, and property taxes. All receivables are considered collectible in full. A summary of the principal items of intergovernmental receivables follows:

Governmental GovernmentFund Wide

Financial FinancialStatements Statements

State and Federal Aid $ 462,673.98 $ 462,673.98 Other 16,724.66 16,724.66 Interfunds 158,353.17 158,851.40 Gross Receivables 637,751.81 638,250.04 Less: Allowance for Uncollectibles

Total Receivables, Net $ 637,751.81 $ 638,250.04

NOTE 5 – INTERFUND TRANSFERS AND BALANCES Transfers between funds are used to (1) move investment income earned in the Capital Projects Fund that is required to be expended in the Debt Service Fund; (2) repay expenses paid by another fund; and (3) make a Board contribution to the Unemployment Compensation Trust Fund. The following interfund balances remained on the fund financial statements at June 30, 2015:

Interfund InterfundFund Receivable Payable

General Fund $ 155,650.17 $ - Special Revenue Fund 2,394.09 - Capital Projects Fund - 170,519.09 Debt Service Fund 308.91 - Proprietary Fund 13,171.23 1,005.31

Total $ 171,524.40 $ 171,524.40

The general fund receivable is comprised of mainly one inter-fund which is due from the Capital Projects Fund for $370,519.09. There is also an inter-fund payable in the amount of $200,000.00 due from the General fund to the Capital Projects Fund. These receivables are for expenses paid by each fund during the fiscal year.

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NOTE 6 – INVENTORY Inventory in the Food Service Enterprise Fund at June 30, 2015 consisted of the following:

Food $ 18,905.27 Supplies 5,159.31

$ 24,064.58

The value of Federal donated commodities is the difference between market value and cost of the commodities at the date of purchase and has been included as an item of non-operating revenue in the financial statements. The value of commodities included in the food inventory on June 30, 2015 is $3,521.08. NOTE 7 – CAPITAL ASSETS Capital asset activity for the fiscal year ended June 30, 2015 was as follows:

Beginning EndingBalance Additions Deletions Balance

Governmental activities:

Capital assets,not being depreciated:Land $ 7,076,100.00 $ - $ - $ 7,076,100.00 Construction in Progress 4,191,895.62 - 573,600.90 3,618,294.72

Total capital assets not being depreciated 11,267,995.62 - 573,600.90 10,694,394.72

Capital assets being depreciated:Buildings and Building improvements 39,873,558.79 - - 39,873,558.79 Machinery & Equipment 2,426,364.99 799,938.86 - 3,226,303.85

Total capital assets being depreciated athistorical cost 42,299,923.78 799,938.86 - 43,099,862.64

Less accumulated depreciation for:Buildings and improvements (12,732,712.59) (1,282,427.95) - (14,015,140.54) Equipment (1,617,656.46) (162,928.98) - (1,780,585.44)

Subtotal accumulated depreciation (14,350,369.05) (1,445,356.93) - (15,795,725.98)

Total capital assets being depreciated, net of accumulated depreciation 27,949,554.73 (645,418.07) - 27,304,136.66

Governmental activity capital assets, net $ 39,217,550.35 $ (645,418.07) $ 573,600.90 $ 37,998,531.38

Business-type activities:Capital assets being depreciated:

Equipment $ 303,293.86 $ - $ 18,759.55 $ 284,534.31 Less accumulated depreciation (229,117.98) (5,303.46) (18,759.55) (215,661.89)

Enterprise Fund capital assets, net $ 74,175.88 $ (5,303.46) $ - $ 68,872.42

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* Depreciation expense was charged to governmental functions as follows:

DepreciationAllocated

Instruction:Regular $ 586,094.20 Special Education 202,204.97 Other Instruction 47,026.75

Support Services:Student and Instruction Related Services 367,181.08 School Administrative Services 43,800.08 General and Administrative Services 87,982.01 Plant Operations and Maintenance 111,067.84

Total $ 1,445,356.93

NOTE 8 – LONG-TERM OBLIGATIONS Changes in long-term liabilities for the year ended June 30, 2015 are as follows:

Amounts DueBalance Issues or Payments or Balance Within

July 1, 2014 Additions Expenditures June 30, 2015 One Year

Compensated Absences $ 1,601,501.87 $ 254,348.61 $ 17,904.24 $ 1,837,946.24 $ - Capital Leases 1,190,889.38 29,619.60 618,507.49 602,001.49 446,276.28 Premium on Bond Sale - 1,426,503.00 - 1,426,503.00 18,714.37 Bonds Payable 24,140,000.00 15,245,000.00 16,150,000.00 23,235,000.00 1,075,000.00

$ 26,932,391.25 $ 16,955,471.21 $ 16,786,411.73 $ 27,101,450.73 $ 1,539,990.65 Compensated absences and capital leases will be liquidated in the General Fund.


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Bonds Payable Bonds are authorized in accordance with State law by the voters of the municipality through referendums. All bonds are retired in serial installments within the statutory period of usefulness. Bonds issued by the District are general obligation bonds. At June 30, 2015 bonds payable consisted of the following issues: $17,764,000 School Bonds dated May 1, 2007, due in annual installments through January 15, 2017, bearing interest at a rate of 4.00% per annum. The balance remaining as of June 30, 2015 is $1,270,000.00. $7,995,000 School Bonds dated August 1, 2009, due in annual installments through August 1, 2033, bearing interest at varying rates of 4.00% to 4.55% per annum. The balance remaining as of June 30, 2015 is $6,720,000.00. $15,245,000 Refunding School Bonds dated March 31, 2015, due in annual installments through January 15, 2033, bearing interest at rates varying from 2.00% to 5.00%. The balance remaining as of June 30, 2015 is $15,245,000.00. Debt service requirements on serial bonds payable at June 30, 2015 are as follows: Bonds Payable Fiscal Year Ending

June 30, Principal Interest Total

2016 1,075,000.00 996,805.00 2,071,805.00 2017 905,000.00 961,805.00 1,866,805.00 2018 925,000.00 925,605.00 1,850,605.00 2019 955,000.00 886,405.00 1,841,405.00 2020 995,000.00 845,630.00 1,840,630.00

2021-2025 5,670,000.00 4,395,935.00 10,065,935.00 2026-2030 7,165,000.00 2,815,100.00 9,980,100.00 2031-2034 5,545,000.00 830,842.50 6,375,842.50

$ 23,235,000.00 $ 12,658,127.50 $ 35,893,127.50


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Capital Leases The District is leasing computer and technology equipment totaling $284,984.88, Curriculum Equipment totaling $400,000.00, and the Early Childhood Center in the amount of $1,800,000.00 under capital leases. The following is a schedule of the future minimum lease payments under these capital leases and the net minimum lease payments at June 30, 2015:

Fiscal Year EndingJune 30, Total

2016 464,908.20 2017 78,197.54 2018 78,197.54 2019 5,923.92

Total minimum lease payments 627,227.20 Less amount representing interest 25,225.71 Present value of lease payments $ 602,001.49

NOTE 9 – PENSION PLANS Description of Plans - All required employees of the District are covered by either the Public Employees' Retirement System, the Teachers' Pension and Annuity Fund or the Defined Contribution Retirement Program which have been established by state statute and are administered by the New Jersey Division of Pension and Benefits (Division). According to the State of New Jersey Administrative Code, all obligations of the Systems will be assumed by the State of New Jersey should the Systems terminate. The Division issues a publicly available financial report that includes the financial statements and required supplementary information for the Public Employees Retirement System and the Teachers' Pension and Annuity Fund. These reports may be obtained by writing to the Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey, 08625 or the reports can be accessed on the internet at http://www.state.nj.us/treasury/pensions/annrprts.shtml. Teachers' Pension and Annuity Fund (TPAF) The Teachers' Pension and Annuity Fund was established as of January 1, 1955, under the provisions of N.J.S.A. 18A:66 to provide retirement benefits, death, disability and medical benefits to certain qualified members. The Teachers' Pension and Annuity Fund is considered a cost-sharing multiple-employer plan with a special funding situation, as under current statute, all employer contributions are made by the State of New Jersey on behalf of the District and the system's other related non-contributing employers. Membership is mandatory for substantially all teachers or members of the professional staff certified by the State Board of Examiners, and employees of the Department of Education who have titles that are unclassified, professional and certified.

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http://www.state.nj.us/treasury/pensions/annrprts.shtml



Public Employees' Retirement System (PERS) The Public Employees' Retirement System (PERS) was established as of January 1, 1955 under the provisions of N.J.S.A. 43:15A to provide retirement, death, disability and medical benefits to certain qualified members. The Public Employees' Retirement System is a cost-sharing multiple-employer plan. Membership is mandatory for substantially all full-time employees of the State of New Jersey or any county, municipality, school district, or public agency, provided the employee is not required to be a member of another state-administered retirement system or other state or local jurisdiction. Defined Contribution Retirement Program (DCRP) The Defined Contribution Retirement Program (DCRP) was established as of July 1, 2007 under the provisions of Chapter 92, P.L. 2007 and Chapter 103, P.L. 2007 (N.J.S.A. 43:15C-1 et seq.). The DCRP is a cost-sharing multiple-employer defined contribution pension fund. The DCRP provides eligible members, and their beneficiaries with a tax-sheltered, defined contribution retirement benefit, along with life insurance and disability coverage. Vesting and benefit provisions are established by N.J.S.A. 43:15C-1 et. seq. The contribution requirements of plan members are determined by state statute. In accordance with Chapter 92, P.L. 2007 and Chapter 103, P.L. 2007, plan members are required to contribute 5.5% of their annual covered salary. The State Treasurer has the right under current law to make temporary reductions in member rates based on the existence of surplus plan assets in the retirement system; however statute also requires the return to the normal rate when such surplus pension assets no longer exist. In addition to the employee contributions, the School District’s contribution amounts for each pay period are required to be transmitted to Prudential Financial not later than the fifth business day after the date on which the employee is paid for that pay period. The School District has 36 employees enrolled in the Defined Contribution Retirement Program (DCRP) during fiscal year ended June 30, 2015. Funding Policy The contribution policy is set by N.J.S.A. 43:15A, Chapter 62, P.L. of 1994, Chapter 115, P.L. of 1997 and N.J.S.A. 18:66, and requires contributions by active members and contributing employers. Plan member and employer contributions may be amended by State of New Jersey legislation. TPAF and PERS provide for employee contributions of 5.5% of employees’ annual compensation, as defined. Employers are required to contribute at an actuarially determined rate in both TPAF and PERS. The current TPAF rate is 10.76% and the PERS rate is 2.41% of covered payroll. The School District’s contributions to TPAF for the years ending June 30, 2015, 2014 and 2013 are listed below, and paid by the State of New Jersey on behalf of the board, equal to the required contributions for each year. The School District’s contributions to PERS for the years ending June 30, 2015, 2014 and 2013 are also listed below, equal to the required contributions for each year.

Annual Percentage NetYear Pension of APC Pension

Funding Cost (APC) Contributed Obligation

6/30/2015 $ 364,608.00 100% $ - 6/30/2014 $ 323,211.00 100% $ - 6/30/2013 330,949.00 100% -

Three Year Trend Information for PERS

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During the fiscal year ended June 30, 2015, the State of New Jersey contributed $1,630,445.00 to the TPAF for post-retirement benefits on behalf of the District. Also, in accordance with N.J.S.A. 18A:66-66, the State of New Jersey reimbursed the District $898,263.86 during the year ended June 30, 2015 for the employer's share of social security contributions for TPAF members, as calculated on their base salaries. This amount has been included in the financial statements, and the combining and individual fund statements and schedules as a revenue and expenditure in accordance with GASB Statement No. 24.

Annual Percentage NetYear Pension of APC Pension

Funding Cost (APC) Contributed Obligation

6/30/2015 $ 1,630,445.00 100% - 6/30/2014 $ 1,286,201.00 100% - 6/30/2013 1,615,307.00 100% -

Three Year Trend Information for TPAF (Paid on behalf of the District)

Significant Legislation Chapter 78, P.L. 2011, effective June 28, 2011 made various changes to the manner in which the Public Employees’ Retirement System (PERS) and the Teacher’s Pension and Annuity Fund (TPAF) operate and to the benefit provisions of those systems. Chapter 78’s provisions impacting employee pension and health benefits include:

• New members of the PERS and TPAF hired on or after June 28, 2011 (Tier 5 members) will need 30 years of creditable service and age 65 for receipt of the early retirement benefit without a reduction of ¼ of 1% for each month that the member is under age 65.

• The eligibility age to qualify for a service retirement in the systems is increased from age 63 to 65 for Tier 5 members.

• Increases in active member contribution rates. PERS active member rates increase from 5.5% of annual compensation to 6.5% plus an additional 1% phased-in over 7 years. For fiscal year 2013, the member contribution rates increased in October 2012. The phase-in of the additional incremental member contribution rates for PERS members will take place in July of each subsequent fiscal year.

• The payment of automatic cost-of-living adjustment (COLA) additional increases to current and future retirees and beneficiaries is suspended until reactivated as permitted by this law.

• New employee contribution requirements towards the cost of employer-provided health benefit coverage. Employees are required to contribute a certain percentage of the cost of coverage.

• The rate of contribution is determined based on the employee’s annual salary and the selected level of coverage. The increased employee contributions will be phased in over a 4-year period for those employed prior to Chapter 78’s effective date with a minimum contribution required to be at least 1.5% of salary.

• In addition, this new legislation changes the method for amortizing the pension systems’ unfunded accrued liability (from a level percent of pay method to a level dollar of pay).

Chapter 1, P.L. 2010, effective May 21, 2010, made a number of changes to the State-administered retirement systems concerning eligibility, the retirement allowance formula, the definition of compensation, the positions eligible for service credit, the non-forfeitable right to a pension, the prosecutor’s part of the PERS, and employer contributions to the retirement systems.

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Also, Chapter 1, P.L. 2010 changed the membership eligibility criteria for new members of PERS from the amount of annual compensation to the number of hours worked weekly. Also, it returned the benefit multiplier for new members of PERS to 1/60th from 1/55th, and it provided that new members of PERS have the retirement allowance calculated using the average annual compensation for the last five years of service instead of the last three years of service. New members of PERS will no longer receive pension service credit from more than one employer. Pension service credit will be earned for the highest paid position only. For new members of the PFRS, the law capped the maximum compensation that can be used to calculate a pension from these plans at the annual wage contribution base for social security, and requires the pension to be calculated using a three year average annual compensation instead of the last year’s salary. This law also closed the Prosecutors Part of the PERS to new members and repealed the law for new members that provided a non-forfeitable right to receive a pension based on the laws of the retirement system in place at the time 5 years of pension service credit is attained. The law also requires the State to make its full pension contribution, defined a 1/7th of the required amount, beginning in fiscal years 2012. Chapter 3, P.L. 2010, effective May 21, 2010, replaced the accidental and ordinary disability retirement for new members of the PERS with disability insurance coverage similar to that provided by the State to individuals enrolled in the State’s Defined Contribution Retirement Program. Chapter 92, P.L. 2007 implemented certain recommendations contained in the December 1, 2006 report of the Joint Legislative Committee on Public Employee Benefits Reform; established a DCRP for elected and certain appointed officials, effective July 1, 2007; the new pension loan interest rate became 4.69% per year, and an $8.00 processing fee per loan was charged, effective January 1, 2008. The legislation also removed language from existing law that permits the State Treasurer to reduce employer pension contributions needed to fund the Funds and Systems when excess assets are available. NOTE 10 – Public Employees Retirement System At June 30, 2015, the District reported a liability of $8,280,663.00 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The District’s proportion of the net pension liability was based on a projection of the District’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. At June 30, 2014, the District’s proportion was 0.0442278480%, which was an increase of 3.11% from its proportion measured as of June 30, 2013. For the year ended June 30, 2015, the District recognized pension expense of $423,680.00. At June 30, 2015, the District reported deferred outflows of resources and deferred inflows of resources related to PERS from the following sources:

Deferred Outflows Deferred Inflowsof Resources of Resources

Differences between expended and actual experienceChanges of assumptions 260,388.00$ Net difference between projected and actual earnings on pension plan investments 493,483.00 Changes in proportion and differences between District contributions and proportionate share of contributions 215,052.00 District contributions subsequent to the measurement date 364,608.00

Total 840,048.00$ 493,483.00

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$364,608.00 reported as deferred outflows of resources related to pensions resulting from school district contributions subsequent to the measurement date (June 30, 2014) will be recognized as a reduction of the net pension liability in the year ended June 30, 2015. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year ended June 30,

2016 (81,225.11)$ 2017 (81,225.11) 2018 (81,225.11) 2019 (81,225.11) 2020 63,753.77

Thereafter 28,051.66 Total (233,095.00)$

Actuarial Assumptions The total pension liability for the June 30, 2014 measurement date was determined by an actuarial valuation of July 1, 2013, which was rolled forward to June 30, 2014. The total pension liability for the June 30, 2013 measurement date was determined by an actuarial valuation as of July 1, 2013 This actuarial valuation used the following assumptions, applied to all period in the measurement:

Inflation rate 3.01%

Salary increases:

2012-2021 2.15% - 4.40% (based on age)

Thereafter 3.15% - 5.40% (based on age)

Investment rate of return: 7.90%

Mortality rates were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback 1 year for females) with adjustments for mortality improvements from the base year of 2012 based on Projections Scale AA.

The actuarial assumptions used in the July 1, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2008 to June 30, 2011.


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In accordance with State statute, the long-term expected rate of return on plan investments is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. Best estimates of arithmetic real rates of return for each major asset class included in PERS’s target asset allocation as of June 30, 2014 are summarized in the following table:

Long-TermTarget Expected Real

Asset Class Allocation Rate of Return

Cash 6.00% 0.80%Core Bonds 1.00% 2.49%Intermediate-Term Bonds 11.20% 2.26%Mortgages 2.50% 2.17%High Yield Bonds 5.50% 4.82%Inflation-Indexed Bonds 2.50% 3.51%Broad US Equities 25.90% 8.22%Developed Foreign Equities 12.70% 8.12%Emerging Market Equities 6.50% 9.91%Private Equity 8.25% 13.02%Hedge Funds/Absolute Return 12.25% 4.92%Real Estate (Property) 3.20% 5.80%Commodities 2.50% 5.35%

Discount Rate

The discount rate used to measure the total pension liability was 5.39% and 5.55% as of June 30, 2014 and 2013, respectively. This single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.9%, and a municipal bond rate of 4.29% and 4.63% as of June 30, 2014 and 2013, respectively, based on the Bond Buyer Go 20-Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based on the average of the last five years of contributions made in relation to the last five years of recommended contributions. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make projected future benefit payments of current plan members through 2033, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.

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Sensitivity of the District’s proportionate share of the net pension liability to changes in the discount rate. The following presents the District’s proportionate share of the net pension liability calculated using the discount rate of 5.39%, as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (4.39%) or 1-percentage point higher (6.39%) than the current rate:

1% Current Discount 1%Decrease Rate Increase(4.39%) (5.39%) (6.39%)

District's proportionate share ofthe net pension liability 10,417,355.74$ 8,280,663.00 6,486,384.48 Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued PERS financial report. NOTE 11 – Teachers Pensions and Annuity Fund (TPAF) At June 30, 2015, the District reported a liability for its proportionate share of the net pension liability that reflected a reduction for State pension support provided to the District. The amount recognized by the District as its proportionate share of the net pension liability, the related State support, and the total portion of the net pension liability that was associated with the District were as follows:

District's proprotionate share of the net pension liability -$

State's proprotionate share of the net position liability associated with the District 61,561,147.00

Total 61,561,147.00$ The net pension liability was measured as of June 30, 2014 and the total pension liability to calculate the net pension liability was determined by an actuarial valuation as of that date. The District’s proportion of the net pension liability was based on a projection of the District’s long-term share of contributions to the pension plan relative to the projected contributions of all participating school districts and the State, actuarially determined. At June 30, 2014, the District’s proportion was 0.00%, which was a decrease of 0.00% from its proportion measured as of June 30, 2013.


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For the year ended June 30, 2015, the District recognized pension expense of $3,312,168.00 and revenue of $3,312,568.00 for support provided by the State. At June 30, 2015, the District reported deferred outflows of resources and deferred inflows of resources related to TPAF from the following sources:

Deferred Outflows Deferred Inflowsof Resources of Resources

Differences between expended and actual experience 25,132.00 Changes of assumptions 2,638,735.00 Net difference betweenn projected and actual earnings on pension plan investments 1,991,942.00 Changes in proportion and differences between District contributions and proportionate share of contributions 1,178,506.00 District contributions subsequent to the measurement date 630,123.00

Total 3,268,858.00$ 3,195,580.00

$630,123.00 reported as deferred outflows of resources related to pensions resulting from district contributions subsequent to the measurement date (June 30, 2014) will be recognized as a reduction of the net pension liability in the year ended June 30, 2015. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year ended June 30,

2016 (133,917.54)$ 2017 (133,917.54) 2018 (133,917.54) 2019 (133,917.54) 2020 312,147.19

Thereafter 780,367.96 Total 556,845.00$


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Actuarial assumptions. The total pension liability in the June 30, 2014 actuarial valuation was determined using the following assumptions, applied to all period included in the measurement:

Inflation Rate 2.50%

Salary increases 2012-2021 Varies based on experience Thereafter Varies based on experience

Investment rate of return 7.90%

Mortality rates were based on the RP-2000 Health Annuitant Mortality Table for Males or Females, as appropriate with adjustments for mortality improvements based on Scale AA from the base year of 2000 until the valuation date plus 15 years to account for future mortality improvement. Post-retirement mortality improvements for non-disabled annuitants are projected using Scale AA from the base year of 2000 for males and 2003 for females until the valuation date plus 7 years to account for future mortality improvement. The actuarial assumptions used in the July 1, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2009 to June 30, 2012.


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In accordance with State statute, the long-term expected rate of return on plan investments is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. Best estimates of arithmetic real rates of return for each major asset class included in TPAF’s target asset allocation as of June 30, 2014 are summarized in the following table:

Long-TermTarget Expected Real

Asset Class Allocation Rate of Return.

Cash 6.00% 0.50%Core fixed Income 0.00% 2.19%Core bonds 1.00% 1.38%Short-term bonds 0.00% 1.00%Intermediate-term bonds 11.20% 2.60%Long-term bonds 0.00% 3.23%Mortgages 2.50% 2.84%High yield bonds 5.50% 4.15%Non-US fixed income 0.00% 1.41%Inflation-indexed bonds 2.50% 1.30%Broad US equities 25.90% 5.88%Large cap US equities 0.00% 5.62%Mid cap US equities 0.00% 6.39%Small cap US equities 0.00% 7.39%Developed foreign equities 12.70% 6.05%Emerging market equities 6.50% 8.90%Private equity 8.25% 9.15%Hedge funds/absolute return 12.25% 3.85%Real estate (property) 3.20% 4.43%Real estate (REITS) 0.00% 5.58%Commodities 2.50% 3.60%Long credit bonds 0.00% 3.74%

Discount rate. The discount rate used to measure the total pension liability was 4.68% and 4.95% as of June 30, 2014 and 2013, respectively. This single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.9%, and a municipal bond rate of 4.29% and 4.63% as of June 30, 2014 and 2013, respectively, based on the Bond Buyer Go 20-Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based on the average of the last five years. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make projected future benefit payments of current plan members through 2027. Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through 2027, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.

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Sensitivity of the District’s proportionate share of the net pension liability to changes in the discount rate. The following presents the District’s proportionate share of the net pension liability calculated using the discount rate of 4.68% as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (3.68%) or 1-percentage point higher (5.68%) than the current rate:

1% Current Discount 1%Decrease Rate Increase(3.68%) (4.68%) (5.68%)

District's proportionate share ofthe net pension liability -$ - -

Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued TPAF financial report.


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NOTE 12 – POST-RETIREMENT BENEFITS The School District contributes to the New Jersey State Health Benefits Program (“the SHBP”), a cost sharing multiple-employer defined benefit post-employment healthcare plan administered by the State of New Jersey Division of Pensions and Benefits. SHBP provides medical, prescription drug, mental health/substance abuse and Medicare Part B reimbursement to retirees and their covered dependents. The State Health Benefits Program is found in the New Jersey Statutes Annotated, Title 52, Article 17.25 et seq. Rules governing the operation and administration of the program are found in Title 17, Chapter 9 of the New Jersey Administrative Code. The Division of Pension and Benefits issues a publicly available financial report that includes the financial statements and required supplementary information for the Public Employees Retirement System and the Teachers' Pension and Annuity Fund. These reports may be obtained by writing to the Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey, 08625. P.L. 1987, Chapter 384 and P.L. 1990 Chapter 6 required Teachers’ Pensions and Annuity Fund (TPAF) and the Public Employees’ Retirement System (PERS), respectively, to fund post-retirement medical benefits for those State employees who retire after accumulating 25 years of credited service or on a disability retirement. P.L. 2007 c. 103 amended the law to eliminate the funding of post-retirement medical benefits through the TPAF and PERS. It created separate funds outside of the pension plans for funding and payment of post-retirement medical benefits for retired State employees and educational employees. As of June 30, 2014, there were 103,432 retirees receiving post-retirement medical benefits, and the State contributed $1.04 billion on their behalf. The cost of these benefits is funded through contributions by the State in accordance with P.L. 1994, c.62. Funding of post-retirement medical benefits changed from a pre-funding basis to a pay-as-you-go basis beginning in Fiscal Year 1994. Funding of post-retirement medical premiums changed from a pre-funding basis to a pay-as-you-go basis beginning in Fiscal Year 1994. The State is also responsible for the cost attributable to P.L. 1992, c.126, which provides employer paid health benefits to members of PERS and the Alternate Benefit Program who retired from a board of education or county college with 25 years of service. The State paid $165.8 million toward Chapter 126 benefits for 18,122 eligible retired members in Fiscal Year 2014. The State also makes on-behalf payment for Teachers Pension and Annuity program retirees for health benefits. The on-behalf amount paid by the State of New Jersey in fiscal year 2014 was $1,000,322.00. NOTE 13 – COMPENSATED ABSENCES The District accounts for compensated absences (e.g., unused vacation, sick leave) as directed by Governmental Accounting Standards Board Statement No. 16 (GASB 16), “Accounting for Compensated Absences”. A liability for compensated absences attributable to services already rendered and not contingent on a specific event that is outside the control of the employer and employee is accrued as employees earn the rights to the benefits. The liability for vested compensated absences for the governmental fund types is recorded in current and long-term liabilities. The current portion of the compensated absences balance of the governmental funds is not considered material to the applicable funds total liabilities, and therefore is not shown separately from the long-term liability of compensated absences. The liability for vested compensated absences of the proprietary fund types is recorded within those funds as the benefits accrue to employees. As of June 30, 2015, there was a $13,531.98 lliability for compensated absences in the Food Service Enterprise Fund.

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NOTE 14 – DEFERRED COMPENSATION The District offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 403(b). The plans, which are administered by the entities listed below, permit participants to defer a portion of their salary until future years. Amounts deferred under the plans are not available to employees until termination, retirement, death or unforeseeable emergency. The plan administrators are as follows: VALIC

Siracusa Benefits Lincoln Investment Planning, Inc. Equitable Life

NOTE 15 – CAPITAL RESERVE ACCOUNT A capital reserve account was established by the Little Egg Harbor Township Board of Education by the inclusion of $120,000 in the original 1999-2000 annual capital outlay budget, which was certified for taxes, for the accumulation of funds for use as capital outlay expenditures in subsequent fiscal years. The capital reserve account is maintained in the general fund and its activity is included in the general fund annual budget. Funds placed in the capital reserve account are committed to capital projects in the district’s approved Long Range Facilities Plan (LRFP). Upon submission of the LRFP to the department, a district may increase the balance in the capital reserve by appropriating funds in the annual general fund budget certified for taxes. A district may also appropriate additional amounts when the express approval of the voters has been obtained either by a separate proposal at budget time or by a special question at one of the four special elections authorized pursuant to N.J.S.A.19:60-2. Pursuant to N.J.A.C.6:23A-5.1(d) 7, the balance in the account cannot at any time exceed the local support costs of uncompleted capital projects in its LRFP. The activity of the capital reserve for the July 1, 2014 to June 30, 2015 fiscal year is as follows:

Beginning Balance, July 1, 2014 $ 56,692.43 March 18, 2015 Board Resolution (48,800.00) Interest Earnings 200.00 Ending Balance, June 30, 2015 $ 8,092.43


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NOTE 16 – MAINTENANCE RESERVE ACCOUNT A maintenance reserve account was established by the Little Egg Harbor Township Board of Education for the accumulation of funds for use as required maintenance expenditures in subsequent fiscal years. The maintenance reserve account is maintained in the general fund and its activity is included in the general fund annual budget. The activity of the Maintenance reserve for the July 1, 2014 to June 30, 2015 fiscal year is as follows: Beginning balance, July 1, 2014 $ 65,300.00

Deposits:Interest 300.00

Ending balance, June 30, 2015 $ 65,600.00

NOTE 17 – EMERGENCY RESERVE ACCOUNT An emergency reserve account was established by the Little Egg Harbor Township Board of Education for the accumulation of funds for the purpose of financing unanticipated general fund expenditures required for a thorough and efficient education in accordance with N.J.S.A. 18A:7F-41c(1). The emergency reserve account is maintained in the general fund and its activity is included in the general fund annual budget. The activity of the emergency reserve for the July 1, 2014 to June 30, 2015 fiscal year is as follows: Beginning balance, July 1, 2014 $ 38,093.00

Increase:Interest 200.00

Ending balance, June 30, 2015 $ 38,293.00


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NOTE 18 – RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Property and Liability Insurance - The District maintains commercial insurance coverage for property, liability and surety bonds. New Jersey Unemployment Compensation Insurance - The District has elected to fund its New Jersey Unemployment Compensation Insurance under the "Benefit Reimbursement Method". Under this plan, the District is required to reimburse the New Jersey Unemployment Trust Fund for benefits paid to its former employees and charged to its account with the State. The District is billed quarterly for amounts due to the State. The following is a summary of District contributions, employee contributions, reimbursements to the State for benefits paid and the ending balance of the District's expendable trust fund for the current and prior year:

Fiscal Interest on Amount EndingYear Investments Contributions Reimbursed Balance

2014-2015 $ 153.60 $ 33,149.80 $ 2,055.74 $ 134,629.79 2013-2014 150.68 30,832.69 21,062.06 103,382.13 2012-2013 71.01 27,975.70 74,285.53 93,460.82

Federal and State Grants The District participates in a number of federal and state grant programs. The grant programs are subject to program compliance audits by the grantors or their representatives. The District is potentially liable for expenditures which may be disallowed pursuant to the terms of these grant programs. Management is not aware of any material items of noncompliance would result in the disallowance of program expenditures. NOTE 19 – DEFICIT UNRESTRICTED NET POSITION The School District had a deficit in unrestricted net position of ($10,583,321.39) as of June 30, 2015. This deficit was attributable to the Net Pension Liability, the liability for compensated absences as well as the June State Aid Payment as noted above.


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NOTE 20 – FUND BALANCES Restricted - As stated in note 1, the restricted fund balance classification includes amounts that are restricted to specific purposes. Such restrictions, or constraints, are placed on the use of resources by either of the following: (1) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (2) imposed by law through constitutional provisions or enabling legislation. Specific restrictions of the School District’s fund balance are summarized as follows:

General Fund – For Excess Surplus - In accordance with N.J.S.A. 18A:7F-7, as amended, the designation of restricted fund balance - excess surplus is the result of a required calculation pursuant to the New Jersey Comprehensive Educational Improvement and Financing Act of 1996 (CEIFA). New Jersey school districts are required to reserve general fund balance at the fiscal year end of June 30 if they did not appropriate a required minimum amount as budgeted fund balance in their subsequent years’ budget. The excess fund balance at June 30, 2015 is $401,347.18. Additionally, $481,733.48 of excess fund balance generated during 2013-2014 has been restricted and designated for utilization in the 2015-2016 budget.

Committed Fund Balance As stated in note 1, Committed - The committed fund balance classification includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the School District’s highest level of decision-making authority, which, for the School District, is the Board of Education. Such formal action consists of an affirmative vote by the Board of Education, memorialized by the adoption of a resolution. Once committed, amounts cannot be used for any other purpose unless the Board of Education removes, or changes, the specified use by taking the same type of action (resolution) it employed to previously commit those amounts.

General Fund –

For Capital Reserve Account - As of June 30, 2015, the balance in the capital reserve account is $8,092.43. These funds are restricted for future capital outlay expenditures for capital projects in the School District’s approved Long Range Facilities Plan (LRFP).

For Maintenance Reserve Account - As of June 30, 2015, the balance in the maintenance reserve account is $65,600.00. These funds are restricted for future maintenance expenditures for the districts buildings and grounds. Emergency Reserve Account – As of June 30, 2015, the balance in the emergency reserve was $38,293.00. These funds are restricted for the purpose of financing unanticipated general fund expenditures required for a thorough and efficient education in accordance with N.J.S.A. 18A:7F-41c(1).

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General Fund -

Unassigned - As stated in note 1, the unassigned fund balance classification represents fund balance that has not been restricted, committed, or assigned to specific purposes. The School District’s unassigned fund balance is summarized as follows:

General Fund - As of June 30, 2015, the general fund balance unassigned classification contained a deficit in the amount of $534,755.79. As discussed in Note 1, this is a direct result of the delay in the June payments of state aid until the following fiscal year, is not considered a violation of New Jersey statute and regulation nor in need of corrective action.

NOTE 21 – CALCULATION OF EXCESS SURPLUS In accordance with N.J.S.A. 18A:7F-7, the designation for Reserved Fund Balance - Excess Surplus is a required calculation pursuant to the New Jersey Comprehensive Educational Improvement and Financing Act of 1996 (CEIFA). New Jersey school districts are required to reserve General Fund Fund balance at the fiscal year end of June 30 if they did not appropriate a required minimum amount of budgeted fund balance in their subsequent years' budget. The excess fund balance generated for the year ended June 30, 2015 is $401,347.18. NOTE 22 – DEFICIT FUND BALANCES The District does not have a deficit fund balance in any of its Funds. However, they did have a deficit relating to the two final state aid payment in the amount of $534,755.79 in the General Fund as of June 30, 2015 as reported in the fund statements (modified accrual basis). P.L. 2003, c. 97 provides that in the event a state school aid payment is not made until the following school budget year, districts must record the last payment as revenue, for budget purposes only, in the current school budget year. For intergovernmental transactions, GASB Statement No. 33 requires that recognition (revenue, expenditure, asset, liability) should be in symmetry, i.e. if one government recognizes an asset; the other government recognizes a liability. NOTE 23 – RESTATEMENT OF PRIOR YEAR BALANCES Net position has been restated as required by the implementation of GASB 68, as discussed in notes 11 and 12 above. Beginning net position as previously reported at June 30, 2014 12,953,261.83$

Prior period adjustment - Implementation GASB 68 Net pension liability (measurement date) (8,198,237.00) Deferred outflows - District's contributions made during fiscal year 2014 323,211.00

Total prior period adjustment (7,875,026.00)

Net position as restated, July 1, 2014 5,078,235.83$

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NOTE 24 – SUBSEQUENT EVENTS Management has reviewed and evaluated all events and transactions that occurred from June 30, 2015 through December 4, 2015, the date that the financial statements were issued for possible disclosure and recognition in the financial statements, and no items have come to the attention of the District that would require disclosure.

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REQUIRED SUPPLEMENTARY INFORMATION – PART II

BUDGETARY COMPARISON SCHEDULES

See Accompanying Auditor's Report

C-1

VarianceFinal to Actual

Original Budget FavorableBudget Transfers Final Budget Actual (Unfavorable)

REVENUES:Local Sources:

Local Tax Levy 11,023,550.00$ 11,023,550.00$ 11,023,550.00$ -$ Interest Earned on Emergency Reserve 200.00 200.00 200.00 - Interest Earned on Maintenance Reserve 300.00 300.00 300.00 - Interest Earned on Capital Reserve 200.00 200.00 200.00 - Insurance Proceeds 48,800.00 48,800.00 48,800.00 - Miscellaneous 72,700.00 - 72,700.00 121,301.67 48,601.67

Total Local Sources 11,096,950.00 48,800.00 11,145,750.00 11,194,351.67 48,601.67

State Sources:Extraordinary Aid 369,256.00 (68,926.00) 300,330.00 300,330.00 - Categorical Special Education Aid 844,602.00 844,602.00 844,602.00 - Equalization Aid 5,995,899.00 5,995,899.00 5,995,899.00 - Categorical Security Aid 337,297.00 337,297.00 337,297.00 - Adjustment Aid 1,427,520.00 1,427,520.00 1,427,520.00 - Categorical Transportation Aid 1,038,502.00 1,038,502.00 1,038,502.00 - PARCC Readiness Aid 13,560.00 13,560.00 13,560.00 - Per Pupil Growth Aid 13,560.00 13,560.00 13,560.00 - Under Adequacty Aid 6,727.00 6,727.00 6,727.00 - Additional Non Public Transportation Aid - 4,211.00 4,211.00 TPAF Pension (On-Behalf - Non-Budgeted) - 1,630,445.00 1,630,445.00 TPAF Social Security (Reimbursed-

Non-Budgeted) - 898,263.86 898,263.86 Total State Sources 10,046,923.00 (68,926.00) 9,977,997.00 12,510,916.86 2,532,919.86

Federal Sources:Medicaid Reimbursement 33,805.00 33,805.00 54,179.34 20,374.34 FEMA CDBG - - - -

Total Federal Sources 33,805.00 - 33,805.00 54,179.34 20,374.34 Total Revenues 21,177,678.00 (20,126.00) 21,157,552.00 23,759,447.87 2,601,895.87

EXPENDITURES:CURRENT EXPENSEREGULAR PROGRAMS - INSTRUCTION

Kindergarten - Salaries ofTeachers 821,165.00 2,772.40 823,937.40 823,937.40 -

Grades 1 - 5 Salaries of Teachers 4,073,992.00 (25,147.32) 4,048,844.68 4,047,347.14 1,497.54 Grades 6 - 8 Salaries of Teachers 740,066.00 56,390.80 796,456.80 796,456.40 0.40

Regular Programs - Home InstructionSalaries of Teachers 5,664.00 (1,618.00) 4,046.00 3,187.75 858.25 Other Purchased Services (400-500 series) 1,000.00 1,000.00 1,000.00

Regular Programs - Undistributed InstructionSalaries 116.00 116.00 116.00 Purchased Professional - Educational Services 29,120.00 (27,822.00) 1,298.00 1,283.40 14.60 Other Purchased Services (400-500 series) 139,875.00 76,551.42 216,426.42 216,049.72 376.70 General Supplies 190,033.56 (41,468.44) 148,565.12 123,001.65 25,563.47 Textbooks 3,400.00 3,400.00 7.28 3,392.72 Other Objects 4,447.00 (2,902.05) 1,544.95 789.51 755.44

TOTAL REGULAR PROGRAMS - INSTRUCTION 6,008,878.56 36,756.81 6,045,635.37 6,012,060.25 33,575.12

Learning and/or Language Disabilities-Instruction:Salaries of Teachers 219,322.00 219,322.00 215,048.00 4,274.00 Other Salaries for Instruction 49,314.00 (10,667.92) 38,646.08 37,580.86 1,065.22 General Supplies 13,722.85 (4,000.00) 9,722.85 8,803.46 919.39 Textbooks 34.00 34.00 34.00 -

Total Learning and/or Language Disabilities 282,392.85 (14,667.92) 267,724.93 261,466.32 6,258.61

Behavioral DisabilitiesSalaries of Teachers 314,250.00$ (4,592.53) 309,657.47$ 308,599.41 1,058.06$ Other Salaries for Instruction 64,470.00 (4,800.83) 59,669.17 59,669.11 0.06 General Supplies 3,205.00 (1,523.35) 1,681.65 1,606.65 75.00 Textbooks 34.00 34.00 34.00 -

Total Behavioral Disabilities 381,959.00 (10,916.71) 371,042.29 369,909.17 1,133.12 Multiple Disabilities

Salaries of Teachers 126,725.00 8,763.25 135,488.25 134,808.81 679.44 Other Salaries for Instruction 55,444.00 627.38 56,071.38 53,983.37 2,088.01 General Supplies 5,205.00 (5,000.00) 205.00 205.00 - Textbooks 34.00 34.00 34.00 - Other Objects 3,000.00 (1,000.00) 2,000.00 2,000.00 -

Total Multiple Disabilities 190,408.00 3,390.63 193,798.63 191,031.18 2,767.45

Budgetary Comparison ScheduleGeneral Fund



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C-1






Resource Room/Resource CenterSalaries of Teachers 1,440,397.00 41,608.51 1,482,005.51 1,481,742.50 263.01 Other Salaries for Instruction 47,400.00 (10,963.79) 36,436.21 36,387.56 48.65 General Supplies 14,050.00 949.91 14,999.91 13,157.20 1,842.71 Textbooks 340.00 340.00 340.00 -

Total Resource Room/Resource Center 1,502,187.00 31,594.63 1,533,781.63 1,531,627.26 2,154.37

AutismSalaries of Teachers 243,129.00 4,284.84 247,413.84 247,412.23 1.61 Other Salaries for Instruction 158,652.00 (29,548.56) 129,103.44 128,978.25 125.19 Purchased Professional - Educational Services 15,000.00 (1,500.00) 13,500.00 11,238.07 2,261.93 General Supplies 8,000.00 (2,028.91) 5,971.09 5,785.60 185.49 Other Objects 3,000.00 (1,000.00) 2,000.00 2,000.00 -

Total Autism 427,781.00 (29,792.63) 397,988.37 395,414.15 2,574.22

Preschool Disabilities -Full-TimeSalaries of Teachers 75,765.00 819.00 76,584.00 76,584.00 - Other Salaries for Instruction 19,729.00 4,714.00 24,443.00 21,797.19 2,645.81 General Supplies 1,000.00 2,000.00 3,000.00 23.15 2,976.85

Total Preschool Disabilities - Full-Time 96,494.00 7,533.00 104,027.00 98,404.34 5,622.66

TOTAL SPECIAL EDUCATION - INSTRUCTION 2,881,221.85 (12,859.00) 2,868,362.85 2,847,852.42 20,510.43

Home InstructionPurchased Professional - Educational Services 5,900.00 5,900.00 3,100.00 2,800.00

Total Home Instruction - 5,900.00 5,900.00 3,100.00 2,800.00

Basic Skills - InstructionSalaries of Teachers 514,892.00 (6,000.00) 508,892.00 492,913.20 15,978.80 Purchased Professional - Educational Services 3,200.00 3,200.00 3,200.00 - General Supplies 1,230.00 1,230.00 1,230.00 - Textbooks 204.00 204.00 204.00 -

Total Basic Skills - Instruction 516,326.00 (2,800.00) 513,526.00 497,547.20 15,978.80

Bilingual Education - InstructionSalaries of Teachers 76,595.00 76,595.00 75,659.00 936.00 General Supplies 205.00 205.00 205.00 - Textbooks 58.00 58.00 58.00 -

Total Bilingual Education - Instruction 76,858.00 - 76,858.00 75,922.00 936.00

School-Spon. Cocurricular Activities - InstructionSalaries 8,000.00 8,000.00 8,000.00 - General Supplies - -

Total School-Spon. Cocurricular Activities - Inst. 8,000.00 - 8,000.00 8,000.00 - Other Supplemental / At Risk Programs

Salaries of Reading Specialists 90,603.00 90,603.00 77,755.00 12,848.00 Total Other Supplemental / At Risk Programs 90,603.00 - 90,603.00 77,755.00 12,848.00

TOTAL INSTRUCTION 9,581,887.41 26,997.81 9,608,885.22 9,522,236.87 86,648.35

UNDISTRIBUTED EXPENDITURESUndistributed Expenditures - Instruction

Tuition to Other LEA's within the StateRegular -$ 14,081.40$ 14,081.40$ 8,605.30$ 5,476.10$ Special Education 77.30 77.30 77.30 -

Tuition to Private Schools for the Disabled -Within State 98,000.00 (14,158.70) 83,841.30 4,716.18 79,125.12

Total Undistributed Expenditures - Instruction 98,000.00 - 98,000.00 13,398.78 84,601.22

Undistributed Expend. - Attend. & Social WorkerSalaries 11,016.00 11,016.00 11,016.00 - Supplies & Materials 700.00 96.50 796.50 651.74 144.76

Total Undist. Expend. - Attend. & Social Worker 11,716.00 96.50 11,812.50 11,667.74 144.76

Undistributed Expend. - Health ServicesSalaries 198,274.00 (5,171.99) 193,102.01 192,183.90 918.11 Purchased Professional and Technical Services 1,300.00 2,415.19 3,715.19 2,723.04 992.15 Supplies & Materials 3,413.26 2,538.73 5,951.99 5,117.99 834.00

Total Undistributed Expend. - Health Services 202,987.26 (218.07) 202,769.19 200,024.93 2,744.26

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Undist. Expend. - Speech, OT, PT & Related ServicesSalaries 458,521.00 244.50 458,765.50 457,438.28 1,327.22 Purchased Professional - Education Services 85,198.38 (5,900.00) 79,298.38 57,510.03 21,788.35 Supplies & Materials 1,500.00 390.89 1,890.89 1,806.79 84.10 Other Objects 17,500.00 (2,757.78) 14,742.22 14,742.22 -

Total Undist. Expend. - Other Support ServicesStudent - Related Services 562,719.38 (8,022.39) 554,696.99 531,497.32 23,199.67

Undist. Expend. - Other Support Serv. Students -Extraordinary Services

Salaries 176,132.00 (8,322.12) 167,809.88 152,133.03 15,676.85 Purchased Professional - Educational Services 4,000.00 4,000.00 3,217.50 782.50

Total Undist. Expend. - Other Support ServicesStudents - Extraordinary Services 180,132.00 (8,322.12) 171,809.88 155,350.53 16,459.35

Undist. Expend. - GuidanceOther Purchased Professional and Tech. Services 4,000.00 4,000.00 3,797.46 202.54 Supplies & Materials 22,800.00 1,439.40 24,239.40 23,843.28 396.12

Total Undist. Expend. - Guidance 26,800.00 1,439.40 28,239.40 27,640.74 598.66

Undist. Expend. - Child Study TeamsSalaries of Other Professional Staff 493,282.00 (2,120.13) 491,161.87 490,888.33 273.54 Purchased Professional Educational Services 6,486.00 (6,486.00) - - Other Purchased Professional and Tech. Services 18,464.00 (1,224.37) 17,239.63 13,173.50 4,066.13 Other Purchased Services (400-500 series) 11,000.00 (2,543.59) 8,456.41 6,696.67 1,759.74 Supplies & Materials 22,195.00 (899.29) 21,295.71 21,146.69 149.02 Other Objects 1,540.00 1,540.00 1,365.00 175.00

Total Undist. Expend. - Child Study Teams 552,967.00 (13,273.38) 539,693.62 533,270.19 6,423.43

Undist. Expend. - Improvement of Inst. ServicesSalaries of Supervisors of Instruction 413,716.00 35,413.62 449,129.62 448,943.60 186.02 Salaries of Other Professional Staff 101,781.00 6,100.00 107,881.00 101,198.06 6,682.94 Salaries of Secretarial and Clerical Assistants 39,207.00 39,207.00 39,206.40 0.60 Purchased Professional Educational Services - - - - - Other Purchased Services (400-500 series) 4,000.00 2,285.35 6,285.35 6,285.35 - Supplies & Materials 6,000.00 (711.73) 5,288.27 5,288.27 - Other Objects 850.00 850.00 820.00 30.00

Total Undist. Expend. - Improvement of Inst. Serv. 565,554.00 43,087.24 608,641.24 601,741.68 6,899.56

Undist. Expend. - Edu. Media Serv./Sch. LibrarySalaries 38,638.00$ 2,100.00 40,738.00$ 35,729.46 5,008.54$ Salaries of Technology Coordinators - - - - - Purchased Professional and Technical Services 12,235.00 (855.72) 11,379.28 11,379.28 - Other Purchased Services (400-500 series) - - - - Supplies & Materials 2,100.00 (1,090.84) 1,009.16 1,009.16 - Other Objects - -

Total Undistributed Expenditures - EducationalMedia Services - School Library 52,973.00 153.44 53,126.44 48,117.90 5,008.54

Undist. Expend. - Instructional Staff Training Serv.Salaries 400.00 400.00 192.00 208.00 Purchased Professional - Education Services 31,062.50 658.00 31,720.50 26,352.74 5,367.76 Other Purchased Services (400-500 series) 14,716.00 (10,055.24) 4,660.76 3,793.43 867.33 Supplies & Materials 6,400.00 (5,000.00) 1,400.00 1,186.36 213.64

Total Undistributed Expenditures - InstructionalStaff Training Services 52,178.50 (13,997.24) 38,181.26 31,524.53 6,656.73

Undist. Expend. - Supp. Serv. - General Admin.Salaries 286,589.00 (36,679.34) 249,909.66 241,817.41 8,092.25 Legal Services 45,000.00 64,855.40 109,855.40 102,004.90 7,850.50 Audit Fees 27,000.00 1,000.00 28,000.00 28,000.00 - Architect / Engineering Fees 4,000.00 3,890.00 7,890.00 3,450.00 4,440.00 Other Purchased Professional Services 53,087.00 (29,273.46) 23,813.54 23,813.54 - Communications/Telephone 100,692.00 (18,228.00) 82,464.00 76,092.48 6,371.52 BOE Other Purchased Services 1,500.00 1,500.00 1,429.09 70.91 Other Purchased Services (400-500 series) 104,505.00 38,883.80 143,388.80 142,071.87 1,316.93 Travel 3,364.00 200.00 3,564.00 2,313.39 1,250.61 BOE In-House Training/Meeting Supplies 879.00 1,205.00 2,084.00 2,083.64 0.36 Judgements Against the District 5,000.00 5,000.00 5,000.00 - Miscellaneous Expenditures 16,150.00 (2,950.00) 13,200.00 12,285.89 914.11 General Supplies 9,263.48 7,208.60 16,472.08 13,681.35 2,790.73

Total Undistributed Expenditures - Support Services - General Administration 652,029.48 35,112.00 687,141.48 654,043.56 33,097.92

66


C-1






Undist. Expend. - Supp. Serv. - School Admin.Salaries of Principals/Assistant Principals 298,173.00 (68,587.04) 229,585.96 227,419.43 2,166.53 Salaries of Other Professional Staff 119,915.00 0.04 119,915.04 119,915.04 - Salaries of Secretarial and Clerical Assistants 218,839.00 (400.00) 218,439.00 216,473.50 1,965.50 Other Salaries 18,924.00 18,924.00 18,923.28 0.72 Purchased Professional and Technical Services 20,305.00 (30.00) 20,275.00 17,958.00 2,317.00 Other Purchased Services (400-500 series) 4,095.00 (1,462.61) 2,632.39 1,514.96 1,117.43 Supplies & Materials 8,682.00 885.90 9,567.90 9,461.63 106.27 Other Objects 5,610.00 305.00 5,915.00 5,214.00 701.00

Total Undistributed Expenditures - Support Services - School Administration 694,543.00 (69,288.71) 625,254.29 616,879.84 8,374.45

Undist. Expend. - Central ServicesSalaries 309,315.00 (2,062.68) 307,252.32 292,512.25 14,740.07 Purchased Professional Services 36,555.00 (220.00) 36,335.00 31,723.88 4,611.12 Misc. Purchased Services (400-500 series) 1,500.00 1,500.00 1,309.02 190.98 Supplies and Materials 2,795.00 7,059.00 9,854.00 9,057.75 796.25 Miscellaneous Expenditures 2,190.00 (380.00) 1,810.00 1,710.00 100.00

Total Undistributed Expenditures - CentralServices 352,355.00 4,396.32 356,751.32 336,312.90 20,438.42

Undist. Expend. - Admin. Info. Tech.Salaries 220,982.00 6,875.00 227,857.00 224,950.78 2,906.22 Purchased Professional and Technical Services 24,056.00 8,183.12 32,239.12 22,756.34 9,482.78 Other Purchased Services (400-500 series) 6,000.00 (5,499.00) 501.00 400.00 101.00 Supplies and Materials 3,000.00 (2,326.00) 674.00 674.00 - Other Objects 900.00 (900.00) - - -

Total Undistributed Expenditures - Admin.Info Technology 254,938.00 6,333.12 261,271.12 248,781.12 12,490.00

Undist. Expend. - Required Maint. School Fac.Salaries 103,269.36 103,269.36$ 101,276.96 1,992.40$ Cleaning, Repair and Maintenance Service 64,569.50 22,388.77 86,958.27 82,571.77 4,386.50 General Supplies 14,016.10 16,731.48 30,747.58 29,000.65 1,746.93

Total Undistributed Expenditures - RequiredMaintenance for School Facilities 78,585.60 142,389.61 220,975.21 212,849.38 8,125.83

Undist. Expend. - Custodial ServicesSalaries 612,087.00 16,905.32 628,992.32 625,582.92 3,409.40 Purchased Professional and Technical Services 72,625.00 (1,045.93) 71,579.07 70,806.00 773.07 Cleaning, Repair and Maintenance Service 12,640.00 (7,289.00) 5,351.00 3,096.37 2,254.63 Other Purchased Property Services 19,000.00 (1,000.00) 18,000.00 17,776.00 224.00 Insurance 56,283.00 56,283.00 55,627.00 656.00 Miscellaneous Purchased Services 2,000.00 (1,000.00) 1,000.00 577.22 422.78 General Supplies 71,015.00 (1,850.08) 69,164.92 68,892.72 272.20 Energy (Electricity) 308,754.00 5,294.70 314,048.70 312,964.03 1,084.67 Other Objects 1,308.00 (493.00) 815.00 809.00 6.00 Energy ( Natural Gas) 58,646.00 1,441.51 60,087.51 56,645.36 3,442.15 Energy (Oil) 3,000.00 (1,459.48) 1,540.52 1,540.52 -

Total Undistributed Expenditures - OtherOperations and Maintenance of Plant 1,217,358.00 9,504.04 1,226,862.04 1,214,317.14 12,544.90

Undist. Expend. - Care & Upkeep of GroundsSalaries 133,752.00 (111,556.87) 22,195.13 22,195.13 - Cleaning, Repair and Maintenance Service 7,750.00 7,750.00 7,750.00 - General Supplies 5,457.11 5,457.11 5,456.39 0.72

Total Undist. Expend. - Care & Upkeep of Grounds 133,752.00 (98,349.76) 35,402.24 35,401.52 0.72

Undist. Expend. - SecurityPurchased Professional and Technical Services 99,905.00 (400.00) 99,505.00 99,505.00 - Cleaning, Repair and Maintenance Service 3,129.70 3,129.70 2,129.70 1,000.00 General Supplies 75.46 75.46 75.46 -

Total Undist. Expend. - Security 99,905.00 2,805.16 102,710.16 101,710.16 1,000.00

Total Undistributed ExpendituresOperations and Maintenance of Plant 1,529,600.60 56,349.05 1,585,949.65 1,564,278.20 21,671.45

67


C-1






Undist. Expend. - Student Transportation Serv.Sal.- Pup. Trans. (Bet. Home & School) - Reg. 65,737.00 65,737.00 63,881.42 1,855.58 Purchased Technical Services 8,100.00 (6,667.20) 1,432.80 1,432.80 Cleaning, Repair, & Maint. Services 1,457.00 1,457.00 642.00 815.00 Contracted Services - (Other than Home & Sch) 35,263.00 (10,586.00) 24,677.00 10,012.88 14,664.12 Contr. Serv. - (Bet. Home & School) Joint Agrm. 964,256.00 (42,600.00) 921,656.00 915,882.40 5,773.60 Contr. Serv. - (Special Ed. Students) - Vendors 170,562.00 170,562.00 109,033.78 61,528.22 Contr. Serv. - (Spc Ed. Students) - Joint Agrmt 244,754.00 22,600.00 267,354.00 259,347.36 8,006.64 Contr. Serv. - Aid in Lieu Payments 22,984.00 22,984.00 13,260.00 9,724.00 Travel 332.00 332.00 328.00 4.00 Misc. Purchased Service - Transportation 2,958.00 2,958.00 2,929.76 28.24 Supplies & Materials 4,463.00 4,463.00 472.73 3,990.27 Other Objects 561.00 561.00 300.00 261.00

Total Undistributed Expenditures - StudentTransportation Services 1,521,427.00 (37,253.20) 1,484,173.80 1,376,090.33 108,083.47

Unallocated Benefits Group Insurance 56,190.00 (2,845.83) 53,344.17 47,428.58 5,915.59 Social Security Contribution 206,897.00 62,782.28 269,679.28 269,679.28 - Other Retirement Contributions - PERS 336,543.00 (19,180.13) 317,362.87 316,928.49 434.38 Other Retirement Contributions - DCRP - - - - Unemployment - - - - Workmen's Compensation 189,733.00 (7,055.00) 182,678.00 182,654.00 24.00 Health Benefits 3,675,671.00 (176,484.57) 3,499,186.43 3,497,947.73 1,238.70 Tuition Reimbursement 75,000.00 75,000.00 65,838.48 9,161.52 Other Employee Benefits 188,466.00 104,706.15 293,172.15 293,127.72 44.43

Total Unallocated Benefits 4,728,500.00 (38,077.10) 4,690,422.90 4,673,604.28 16,818.62

On-Behalf ContributionsOn-Behalf TPAF Pension Contribution (non-bud) -$ -$ -$ 1,630,445.00$ (1,630,445.00)$ Reimbursed TPAF Social Security Cont.(non-bud) - 898,263.86 (898,263.86)

Total On-Behalf Contributions - - - 2,528,708.86 (2,528,708.86)

Total Personal Services - Employee Benefits 4,728,500.00 (38,077.10) 4,690,422.90 7,202,313.14 (2,511,890.24)

TOTAL UNDISTRIBUTED EXPENDITURES 12,039,420.22 (41,485.14) 11,997,935.08 14,152,933.43 (2,154,998.35)

TOTAL GENERAL CURRENT EXPENSE 21,621,307.63 (14,487.33) 21,606,820.30 23,675,170.30 (2,068,350.00)

CAPITAL OUTLAYInterest Deposit to Capital Reserve 200.00 200.00 200.00 Interest Deposit to Maintenance Reserve 300.00 300.00 300.00 Interest Deposit to Emergency Reserve 200.00 200.00 200.00 Total Deposit to Capital Reserve 700.00 - 700.00 - 700.00

EquipmentNon Instructional

Undistributed - General Administartive 3,704.00 3,704.00 3,704.00 - Undistributed - School Administrative Administartive 2,614.00 2,614.00 2,614.00 - Technology 12,370.48 1,903.88 14,274.36 14,274.36 - Required Maintenance for School Facilities 3,309.45 3,309.45 3,309.45 - Security 53,087.00 53,087.00 53,087.00 -

Total Equipment 68,071.48 8,917.33 76,988.81 76,988.81 -

Facilities Acquisition and Construction ServicesConstruction Services 97,600.00 97,600.00 6,593.00 91,007.00 Construction Services - Buildings - - - Site Improvements 5,570.00 5,570.00 5,570.00 - SDA Debt Service Assessment 429.00 429.00 429.00 -

Total Facilities Acquisition and Construction Services 429.00 103,170.00 103,599.00 12,592.00 91,007.00

TOTAL CAPITAL OUTLAY 69,200.48 112,087.33 181,287.81 89,580.81 91,707.00

Transfer to Charter Schools - - - - -

TOTAL EXPENDITURES 21,690,508.11 97,600.00 21,788,108.11 23,764,751.11 (1,976,643.00)

EXCESS (DEFICIENCY) OF REVENUES OVER(UNDER) EXPENDITURES (512,830.11) (117,726.00) (630,556.11) (5,303.24) 625,252.87

68


C-1






Other Financing Sources:Operating Transfers In:

Interest Earned on Capital Project Fund - 598.54 598.54 Operating Transfers Out:

Debt Service Fund Interest - (24,845.95) (24,845.95) Local Contribution - Transfer to Special Revenue (155,718.00) (155,718.00) (155,718.00) - Local Share of Capital Project - - -

Total Other Financing Sources: (155,718.00) - (155,718.00) (179,965.41) (24,247.41)

Excess (Deficiency) of Revenues and OtherFinancing Sources Over (Under) Expenditures andOther Financing Sources (Uses) (668,548.11) (117,726.00) (786,274.11) (185,268.65) 601,005.46

Fund Balance July 1 1,736,219.99 1,736,219.99 1,736,219.99 -

Fund Balance June 30 1,067,671.88$ (117,726.00)$ 949,945.88$ 1,550,951.34$ 601,005.46$

Recapitulation:Reserve for Encumbrances (253,950.11) - (253,950.11)$ (253,950.11)$ -$ Emergency Reserve - - - Maintenance Reserve - - - Capital Reserve (48,800.00) (48,800.00) (48,800.00) - Budgeted Fund Balance (414,598.00) (68,926.00) (483,524.00) 117,790.37 601,314.37

(668,548.11)$ (117,726.00)$ (786,274.11)$ (184,959.74)$ 601,314.37$

Recapitulation:Restricted Fund Balance:

Excess Surplus: Current Year 401,347.18$ Designated for Subsequent Year's Expenditures 481,733.48

Committed Fund Balance:Capital Reserve 8,092.43 Emergency Reserve 38,293.00 Maintenance Reserve 65,600.00 Reserve for Encumbrances

Assigned Fund Balance:Reserve for Encumbrances 123,839.04 Designated for Subsequent Year's Expenditures -

Unassigned Fund Balance 432,046.21

1,550,951.34 Reconciliation to Governmental Funds Statements (GAAP):

Last State Aid Payment not recognized on GAAP Basis 966,802.00 584,149.34$

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71

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION


C-3

Note A - Explanation of Differences Between Budgetary Inflows andOutflows GAAP Revenue and Expenditures

SpecialGeneral Revenue

Sources / inflows of resources Fund FundActual amounts (budgetary basis) "revenue"

from the budgetary comparison schedule [C-1] 23,759,447.87$ [C-2] 5,097,318.17$

Difference - budget to GAAP:Grant accounting budgetary basis differs from GAAP in that

encumbrances are recognized as expenditures and the relatedrevenue is recognized 19,985.66

Final Two State Aid payments were delayed until July 2014 962,423.00 426,972.00

Final Two State Aid payments were delayed until July 2015 (966,802.00) (420,784.00)

Unexpended Preschool Education Aid (6,188.00)

Total revenues as reported on the statement of revenues, expendituresand changes in fund balance - governmental funds. [B-2] 23,755,068.87$ [B-2] 5,117,303.83$

Uses/outflows of resourcesActual amounts (budgetary basis) "total outflows"

from the budgetary comparison schedule [C-1] 23,764,751.11$ [C-2] 5,253,036.17$

Difference - budget to GAAP:Encumbrances for supplies and equipment ordered but

not received are reported in the year the order is placed forbudgetary purposes, but in the year the supplies are receivedfor financial reporting purposes. 19,985.66

Total expenditures as reported on the statement of revenues, expendituresand changes in fund balance - governmental funds. [B-2] 23,764,751.11$ [B-2] 5,273,021.83$

Note to RSI

Required Supplementary InformationLITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICT


Budget-to-GAAP Reconciliation

72

Required Supplementary Information – Part III

RSI-3a

2014 2013District's proportion of the net pension

liability (asset) 0.0442278480% 0.0428957879%

District's proportionate of the net pensionliability (asset) 8,280,663$ 8,198,237$

District's covered payroll 3,004,166$ 2,883,875$

District's proportionate share of the netpension liability (asset) as a percentageof its covered-employee payroll 275.64% 284.28%

Plan fiduciary net position as a percentage of the total pension liability 52.08% 48.72%

Source: GASB 68 report on Public Employees' Retirement System; District records


Public Employee Retirement SystemLast Two Fiscal Years

Schedule of the District's Proportionate Share of the Net Pension Liability

73

RSI-3b

2014 2013

Contractually required contribution 364,608$ 323,211$

Contributions in relation to the contractuallyrequired contribution 364,608 323,211

Contribution deficiency (excess) -$ -$

District's covered-employee payroll 3,004,166$ 2,883,875$

Contributions as a percentage ofcovered-employee payroll 12.14% 11.21%

Source: GASB 68 report on Public Employees' Retirement System; District records

LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICTSchedule of District Contributions

Public Employee Retirement SystemLast Two Fiscal Years

74

RSI-3c

2014 2013District's proportion of the net pension

liability (asset) 0.00% 0.00%

District's proportionate of the net pensionliability (asset) -$ -$

State's proportionate share of the net pensionliability (asset) associated with the District 61,561,147 59,294,706

Total 61,561,147$ 59,294,706$

District's covered payroll 14,268,060$ 11,546,216$

District's proportionate share of the netpension liability (asset) as a percentageof its covered-employee payroll 0.00% 0.00%

Plan fiduciary net position as a percentage of the total pension liability 33.64% 33.76%

LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICTSchedule of the District's Proportionate Share of the Net Pension Liability

Teachers' Pension and Annuity FundLast Two Fiscal Years

75

RSI-3d

2014 2013

Contractually required contribution 630,123$ 489,281$

Contributions in relation to the contractuallyrequired contribution 630,123 489,281

Contribution deficience (excess) -$ -$

District's covered-employee payroll 14,268,060$ 11,546,216$

Contributions as a percentage ofcovered-employee payroll 4.42% 4.24%

Source: GASB 68 report on Teachers' Pension and Annuity Fund; District records

LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICTSchedule of District Contributions

Teachers' Pension and Annuity FundLast Two Fiscal Years

76

OTHER SUPPLEMENTARY INFORMATION

SPECIAL REVENUE FUND DETAIL STATEMENTS The Special Revenue Fund is used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specific purposes.

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E-2

Budgeted Actual VarianceEXPENDITURES:

Instruction:Salaries of Teachers $ 1,365,542.00 $ 1,321,568.14 $ 43,973.86 Other Salaries for Instruction 426,403.41 398,928.80 27,474.61 Other Purchased Services (400-500 Series) 5,100.00 500.00 4,600.00 General Supplies 144,877.00 44,022.51 100,854.49 Other Objects 8,999.00 8,999.00

Total Instruction 1,950,921.41 1,765,019.45 185,901.96

Support Services:Salaries of Supervisors of Instruction 2,500.00 2,499.84 0.16 Salaries of Program Directors 153,683.79 144,657.60 9,026.19 Salaries of Other Professional Staff 402,508.00 401,249.83 1,258.17 Salaries of Secr. & Clerical Assistants 47,401.25 47,401.25 - Other Salaries 129,250.87 129,250.87 - Salaries of Community Parent Involvement Specialists 57,899.00 57,899.00 - Salaries of Master Teachers 122,838.00 122,838.00 - Personal Services - Employee Benefits 1,170,670.30 1,152,312.73 18,357.57 Purchased Professional - Educational Services 45,000.00 3,507.50 41,492.50 Purchased Other Professional Services 36,049.00 29,428.26 6,620.74 Cleaning, Repairs & Maintenance 3,400.00 3,400.00 Rentals 773,422.00 386,468.38 386,953.62 Contr. Transportation Service (Between Home & School) 195,483.16 195,483.16 - Contr. Transportation Service (Field Trips) 5,100.00 3,064.32 2,035.68 Travel 5,000.00 3,917.11 1,082.89 Other Objects 152,080.00 80,934.45 71,145.55 Supplies and Materials 65,220.00 11,484.22 53,735.78

Total Support Services 3,367,505.37 2,772,396.52 595,108.85

Facilities acquisition and Const. ServicesNoninstructional Equipment - - -

Total facilities acquisition and Const. Services - - -

Contribution to charter schools

Total Expenditures $ 5,318,426.78 $ 4,537,415.97 $ 781,010.81

Total revised 2014-15 Preschool Education Aid Allocation $ 4,207,840.00 Add: Actual Carryover (June 30, 2014) 981,592.00

Add: Budgeted Transfer from the General Fund 2014-15 155,718.00 Add: Tuition Received from Individuals 2014-15 10,076.00 Total Preschool Education Aid Funds Available 5,355,226.00

Less: 2014-15 Budgeted Preschool Education Aid(Prior year budget carryover) (5,318,426.78)

Available & Unbudgeted Preschool Education Aid Funds as of June 30, 2015 36,799.22

Add: June 30, 2015 Unexpended Preschool Education Aid 781,010.81 2014-15 Carryover - Preschool Education Aid/Preschool $ 817,810.03

2014-15 Preschool Education Aid CarryoverBudgeted for Preschool Programs 2015-16 $ 981,592.00

CALCULATION OF BUDGET & CARRYOVER

Budgetary Basis

Special Revenue FundLITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICT


Schedule of Preschool Education Aid

79

CAPITAL PROJECTS FUND DETAIL STATEMENT The Capital Projects Fund is used to account for the acquisition and construction of major capital facilities and equipment purchases other than those financed by proprietary funds.


F-1

Totals

Revenues and Other Financing Sources:State Sources - SCC Grant -$ Bond Proceeds and Transfers (50,000.00) Transfer from Capital Reserve -

Total Revenues (50,000.00)

Expenditures and Other Financing Uses:Purchased Professional and Technical Services 1,357.15 Construction Services 103,780.50 Miscellaneous -

Total Expenditures 105,137.65

Excess (Deficiency) of Revenues Over (Under)Expenditures (155,137.65)

Fund Balance - Beginning 300,522.41

Fund Balance - Ending 145,384.76$


Capital Projects FundLITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICT

Summary Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budgetary Basis

80


F-1a

RevisedPrior Current Authorized

Periods Year Totals CostRevenues and Other Financing Sources

State Sources - SCC Grant $ $ $ - $Bond Proceeds 7,995,000.00 (50,000.00) 7,945,000.00 7,995,000.00 Transfer From Capital Reserve 470.00 470.00 470.00

Total Revenues 7,995,470.00 (50,000.00) 7,945,470.00 7,995,470.00

Expenditures and Other Financing UsesPurchased Professional and Technical

Services 638,376.44 1,234.94 639,611.38 649,482.38 Construction Services 6,864,998.01 103,780.50 6,968,778.51 7,135,685.89 Miscellaneous 210,301.73 - 210,301.73 210,301.73

Total Expenditures 7,713,676.18 105,015.44 7,818,691.62 7,995,470.00

Excess (Deficiency) of Revenues Over (Under) Expenditures $ 281,793.82 $ (155,015.44) $ 126,778.38 $ -

Additional Project Information:Project Number Not ApplicableGrant Date Not ApplicableBond Authorization Date 4/15/2008Bonds Authorized 7,995,000.00 Bonds Issued 7,995,000.00 Original Authorized Costs 7,995,470.00 Revised Authorized Cost 7,995,470.00 Percentage Increase over Original

Authorized Cost 0.00%Percentage Completion 100.00%Original Target Completion Date 2010Revised Target Completion Date 2014


Schedule of Project Revenue, Expenditures, Project Balance, and Project Status - Budgetary Basis

From Inception and for the Year Ended June 30, 20152008 Improvements and Renovations to Intermediate School and George J. Mitchell School

Capital Projects Fund

81


F-1b

RevisedPrior Current Authorized

Periods Year Totals CostRevenues and Other Financing Sources

State Sources - SCC Grant $ - $ $ - $ - Bond Proceeds 17,764,000.00 17,764,000.00 17,764,000.00 Transfer From Capital Reserve 750.00 750.00 750.00

Total Revenues 17,764,750.00 - 17,764,750.00 17,764,750.00

Expenditures and Other Financing UsesPurchased Professional and Technical

Services 670,239.26 122.21 670,361.47 670,561.75 Construction Services 16,682,891.95 - 16,682,891.95 16,701,298.05 Miscellaneous 392,890.20 392,890.20 392,890.20

Total Expenditures 17,746,021.41 122.21 17,746,143.62 17,764,750.00

Excess (Deficiency) of Revenues Over (Under) Expenditures $ 18,728.59 $ (122.21) $ 18,606.38 $ -

Additional Project Information:Project Number Not ApplicableGrant Date Not ApplicableBond Authorization Date 12/12/2006Bonds Authorized 17,764,000$ Bonds Issued 17,764,000 Original Authorized Costs 17,764,375 Revised Authorized Cost 17,764,750 Percentage Increase over Original

Authorized Cost 0.00%Percentage Completion 100.00%Original Target Completion Date 2009Revised Target Completion Date 2014

LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICTCapital Projects Fund

Schedule of Project Revenue, Expenditures, Project Balance, and Project Status - Budgetary Basis

From Inception and for the Year Ended June 30, 2015Improvements and Renovations to Intermediate School and George J. Mitchell School

82

FIDUCIARY FUNDS DETAIL STATEMENTS Fiduciary Funds are used to account for funds received by the school district for a specific purpose. Agency Funds are used to account for assets held by the school district as an agent for individuals, private organizations, other governments and/or other funds. Student Activity Fund – This agency fund is used to account for student funds held at the schools. Payroll Fund – This agency fund is used to account for the payroll transactions of the school district. Scholarship Fund – This is an expendable trust fund and does not limit expenses to the amount earned on the trust principal.


H-1

UnemploymentCompensation Agency

Trust Funds Totals

ASSETSCash and Cash Equivalents $ 131,064.07 $ 324,947.11 $ 456,011.18 Prepaid Unemployment 3,565.72 3,565.72

Total Assets 134,629.79 324,947.11 459,576.90

LIABILITIESSummer Savings 114,632.00 114,632.00 Payable to Student Groups 51,879.04 51,879.04 Accounts Payable - - Payroll Deductions & Withholdings 158,436.07 158,436.07

Total Liabilities - 324,947.11 324,947.11

NET ASSETSHeld in Trust for Unemployment

Claims and Other Purposes $ 134,629.79 134,629.79

Total Net Assets 134,629.79

Total Liabilities and Net Assets $ 459,576.90

Combining Statement of Fiduciary Net AssetsFiduciary Funds


June 30, 2015

83


H-2

UnemploymentCompensation

Trust TotalsADDITIONS

Contributions:Plan Member $ 29,584.08 $ 29,584.08 Prior Year's Claims Disallowed 3,565.72 3,565.72

Total Contributions 33,149.80 33,149.80

Investments Earnings:Interest 153.60 153.60

Net Investment Earnings 153.60 153.60 Total Additions 33,303.40 33,303.40

DeductionsUnemployment Claims 2,055.74 2,055.74

- Total Deductions 2,055.74 2,055.74

Change in Net Assets 31,247.66 31,247.66

Net Assets - Beginning of the Year 103,382.13 103,382.13

Net Assets - End of the Year $ 134,629.79 $ 134,629.79

Combining Statement of Changes in Fiduciary Net AssetsFiduciary Funds



84


H-3

Balance BalanceJuly 1, 2014 Additions Deletions June 30, 2015

Intermediate School andGeorge J. Mitchell Elementary $ 62,189.02 $ 70,496.90 $ 80,806.88 $ 51,879.04

Total Assets $ 62,189.02 $ 70,496.90 $ 80,806.88 $ 51,879.04

Schedule of Receipts and DisbursementsStudent Activity Agency Fund


As of June 30, 2015

85


H-4

Balance BalanceJuly 1, 2014 Additions Deletions June 30, 2014

ASSETS:Cash and Cash Equivalents $ 274,043.05 $ 19,407,374.63 $ 19,408,349.61 $ 273,068.07

Total Assets $ 274,043.05 $ 19,407,374.63 $ 19,408,349.61 $ 273,068.07 -

LIABILITIES:Summer Savings $ 114,400.32 $ 114,632.00 $ 114,400.32 $ 114,632.00 Payroll Deductions & Withholding 159,642.73 7,902,159.32 7,903,365.98 158,436.07 Net Pay - 11,390,583.31 11,390,583.31 -

Total Liabilities $ 274,043.05 $ 19,407,374.63 $ 19,408,349.61 $ 273,068.07

Schedule of Receipts and DisbursementsPayroll Agency Fund


As of June 30, 2015

86

LONG-TERM DEBT SCHEDULES

The Long-Term Debt Schedules are used to reflect the outstanding principal balances of the general long-term liabilities of the school district. This includes serial bonds outstanding an obligations under capital leases.

See

Acc

ompa

nyin

g A

udito

r's R

epor

t

I-1

Am

ount

of

Dat

e of

Orig

inal

Inte

rest

Bal

ance

Bal

ance

Impr

ovem

ent D

escr

iptio

nIs

sue

Issu

eD

ate

Am

ount

Rat

eJu

ne 3

0, 2

014

Ref

unde

dD

ecre

ased

June

30,

201

5

Con

stru

ctio

n, R

enov

atio

nan

d E

quip

men

t Add

ition

toth

e G

eorg

e J.

Mitc

hell

Sch

ool

10/1

/199

9$

3,09

5,00

0

$21

5,00

0.00

$

$21

5,00

0.00

$

-

Alte

ratio

ns a

nd R

enov

atio

nsto

the

Geo

rge

J. M

itche

llS

choo

l and

the

Inte

rmed

iate

S

choo

l5/

1/20

0717

,764

,000

1/

15/2

016

620,

000

4.00

0%16

,950

,000

.00

(1

5,29

5,00

0.00

)

385,

000.

00

1,27

0,00

0.00

1/15

/201

765

0,00

0

4.

000%

Alte

ratio

ns a

nd R

enov

atio

nsto

the

Geo

rge

J. M

itche

llS

choo

l and

the

Inte

rmed

iate

S

choo

l8/

1/20

08$

7,99

5,00

0

8/1/

2015

255,

000

4.00

0%6,

975,

000.

00

25

5,00

0.00

6,

720,

000.

00

8/

1/20

1625

5,00

0

4.

000%

8/1/

2017

255,

000

4.00

0%8/

1/20

1826

0,00

0

4.

000%

8/1/

2019

270,

000

4.00

0%8/

1/20

2028

5,00

0

4.

000%

8/1/

2021

300,

000

4.00

0%8/

1/20

2231

0,00

0

4.

000%

8/1/

2023

325,

000

4.10

0%8/

1/20

2434

0,00

0

4.

100%

8/1/

2025

355,

000

4.15

0%8/

1/20

2637

5,00

0

4.

200%

8/1/

2027

390,

000

4.25

0%8/

1/20

2841

0,00

0

4.

300%

8/1/

2029

425,

000

4.35

0%8/

1/20

3044

5,00

0

4.

400%

8/1/

2031

465,

000

4.45

0%8/

1/20

3249

0,00

0

4.

500%

8/1/

2033

510,

000

4.55

0%

Out

stan

ding

June

30,

201

5

LITT

LE E

GG

HA

RB

OR

TO

WN

SHIP

SC

HO

OL

DIS

TRIC

TSc

hedu

le o

f Gen

eral

Ser

ial B

onds

As

of J

une

30, 2

015

Mat

uriti

es o

f Bon

ds

87

See

Acc

ompa

nyin

g A

udito

r's R

epor

t

I-1

Am

ount

of

Dat

e of

Orig

inal

Inte

rest

Bal

ance

Bal

ance

Impr

ovem

ent D

escr

iptio

nIs

sue

Issu

eD

ate

Am

ount

Rat

eJu

ne 3

0, 2

014

Incr

ease

dD

ecre

ased

June

30,

201

5

Ref

undi

ng S

choo

l Bon

ds3/

31/2

015

$15

,245

,000

1/

15/2

016

200,

000

2.00

0%$

$15

,245

,000

.00

$

$15

,245

,000

.00

1/

15/2

018

670,

000

4.00

0%1/

15/2

019

695,

000

4.00

0%1/

15/2

020

725,

000

4.00

0%1/

15/2

021

750,

000

4.00

0%1/

15/2

022

785,

000

4.00

0%1/

15/2

023

815,

000

5.00

0%1/

15/2

024

860,

000

5.00

0%1/

15/2

025

900,

000

5.00

0%1/

15/2

026

950,

000

5.00

0%1/

15/2

027

1,00

0,00

0

5.00

0%1/

15/2

028

1,05

5,00

0

3.00

0%1/

15/2

029

1,08

0,00

0

4.00

0%1/

15/2

030

1,12

5,00

0

4.00

0%1/

15/2

031

1,17

0,00

0

4.00

0%1/

15/2

032

1,21

5,00

0

3.25

0%1/

15/2

033

1,25

0,00

0

3.37

5%

$24

,140

,000

.00

$

(50,

000.

00)

$

855,

000.

00

$23

,235

,000

.00

Sche

dule

of G

ener

al S

eria

l Bon

dsLI

TTLE

EG

G H

AR

BO

R T

OW

NSH

IP S

CH

OO

L D

ISTR

ICT

Out

stan

ding

June

30,

201

5

Mat

uriti

es o

f Bon

dsAs

of J

une

30, 2

015

88

See

Acco

mpa

nyin

g Au

dito

r's R

epor

t

I-2

Amou

nt o

fIs

sued

Ret

ired

Orig

inal

Bala

nce

Cur

rent

Cur

rent

Bala

nce

Issu

eJu

ne 3

0, 2

014

Year

Year

June

30,

201

5

Early

Chi

ldho

od C

ente

r$

1,80

0,00

0.00

$

737,

287.

00

$

$36

2,74

8.83

$37

4,53

8.17

Tech

nolo

gy E

quip

men

t21

0,00

0.00

44,1

81.7

3

44,1

81.7

3

-

C

ompu

ter E

quip

men

t45

,365

.28

9,

420.

65

9,42

0.65

-

Cur

ricul

um E

quip

men

t40

0,00

0.00

400,

000.

00

19

6,23

2.36

203,

767.

64

C

opy

Mac

hine

14,8

09.8

0

14,8

09.8

0

2,96

1.96

11

,847

.84

C

opy

Mac

hine

14,8

09.8

0

14,8

09.8

0

2,96

1.96

11

,847

.84

$1,

190,

889.

38

$29

,619

.60

$

618,

507.

49

$

602,

001.

49

LITT

LE E

GG

HAR

BO

R T

OW

NSH

IP S

CH

OO

L D

ISTR

ICT

As o

f Jun

e 30

, 201

5Sc

hedu

le o

f Obl

igat

ions

Und

er C

apita

l Lea

se

Des

crip

tion

89


I-3

VariancePositive

Original Budget Final (Negative)Budget Transfers Budget Actual Final to Actual

REVENUES:Local Sources:

Local Tax Levy $ 1,210,683.00 $ $ 1,210,683.00 $ 1,210,683.00 $ -

Total - Local Sources 1,210,683.00 - 1,210,683.00 1,210,683.00 -

State Sources:Debt Service Aid Type II 672,204.00 672,204.00 672,204.00 -

Total - State Sources 672,204.00 - 672,204.00 672,204.00 -

Total Revenues 1,882,887.00 - 1,882,887.00 1,882,887.00 -

EXPENDITURES:Regular Debt Service:

Interest 1,027,888.00 1,027,888.00 1,027,887.50 0.50 Redemption of Principal 855,000.00 855,000.00 855,000.00 -

Total Regular Debt Service 1,882,888.00 - 1,882,888.00 1,882,887.50 0.50

Total Expenditures 1,882,888.00 - 1,882,888.00 1,882,887.50 0.50

Excess (Deficiency) of Revenues Over(Under) Expenditures (1.00) - (1.00) (0.50) 0.50

Other Financing Sources (Uses):Operating Transfers In:

Capital Project:Balance Canceled 24,845.95 24,845.95

- - - 24,845.95 24,845.95

Excess (Deficiency) of Revenues and Other Financing Sources Over (Under)

Expenditures (1.00) - (1.00) 24,845.45 24,846.45

Fund Balance, July 1 2.00 2.00 2.00 -

Fund Balance, June 30 $ 1.00 $ - $ 1.00 $ 24,847.45 $ 24,846.45

Recapitulation of Excess (Deficiency) ofRevenues Over (Under) Expenditures

Budgeted Fund Balance $ (1.00) $ - $ (1.00) $ 24,845.45 $ 24,846.45



Budgetary Comparison ScheduleDebt Service Fund

90

STATISTICAL SECTION

See

Acco

mpa

nyin

g Au

dito

r's R

epor

t

Littl

e Eg

g H

arbo

r Tow

nshi

p Sc

hool

Dis

tric

tEx

hibi

t J-1

Net

Ass

ets

by C

ompo

nent

,Fo

r the

Fis

cal Y

ear E

nded

Jun

e 30

, 201

5(a

ccru

al b

asis

of a

ccou

ntin

g)

2006

2007

2008

2009

2010

2011

2012

2013

2014

*20

15G

over

nmen

tal a

ctiv

ities

Inve

sted

in c

apita

l ass

ets,

net

of r

elat

ed d

ebt

14,6

63,7

16.6

4$

(1

,853

,650

.21)

$

2,24

5,04

8.51

$

11,6

37,3

70.8

5$

12

,724

,219

.95

$

12,6

51,7

09.9

4$

13

,018

,506

.51

$

14,7

22,1

16.9

5$

14

,245

,037

.38

$

14,1

60,8

31.7

5$

R

estri

cted

302,

370.

91

16,7

16,6

89.5

8

13

,133

,549

.88

3,10

5,40

6.30

1,70

2,00

4.89

1,52

2,20

2.46

800,

009.

47

1,05

0,01

5.35

1,02

6,71

4.22

1,11

8,90

5.13

U

nres

trict

ed1,

694,

069.

55

1,

578,

681.

78

1,

216,

850.

14

10

7,32

7.73

(1

,464

,341

.17)

(1,4

95,5

23.8

3)

(1

54,4

65.7

7)

(2,3

70,6

05.6

2)

(1

0,19

3,51

5.77

)

(10,

707,

160.

43)

Tota

l gov

ernm

enta

l act

iviti

es n

et a

sset

s16

,660

,157

.10

$

16,4

41,7

21.1

5$

16

,595

,448

.53

$

14,8

50,1

04.8

8$

12

,961

,883

.67

$

12,6

78,3

88.5

7$

13

,664

,050

.21

$

13,4

01,5

26.6

8$

5,

078,

235.

83$

4,

572,

576.

45$

Busi

ness

-type

act

iviti

esIn

vest

ed in

cap

ital a

sset

s, n

et o

f rel

ated

deb

t4,

047.

42$

20,3

04.1

9$

15

,925

.46

$

11,5

46.7

3$

55

,443

.48

$

61,0

98.6

2$

69

,097

.62

$

76,3

41.3

4$

74

,175

.88

$

68,8

72.4

2$

Unr

estri

cted

23,7

45.4

1

22

,054

.50

24,5

52.1

4

6,

791.

21

(15,

606.

43)

41,6

44.2

6

18

5,32

6.85

16

4,93

0.89

13

7,62

0.11

11

0,78

2.62

Tota

l bus

ines

s-ty

pe a

ctiv

ities

net

ass

ets

27,7

92.8

3$

42

,358

.69

$

40,4

77.6

0$

18

,337

.94

$

39,8

37.0

5$

10

2,74

2.88

$

25

4,42

4.47

$

24

1,27

2.23

$

21

1,79

5.99

$

17

9,65

5.04

$

Dis

trict

-wid

eIn

vest

ed in

cap

ital a

sset

s, n

et o

f rel

ated

deb

t14

,667

,764

.06

$

(1,8

33,3

46.0

2)$

2,

260,

973.

97$

11

,648

,917

.58

$

12,7

79,6

63.4

3$

12

,712

,808

.56

$

13,0

87,6

04.1

3$

14

,798

,458

.29

$

14,3

19,2

13.2

6$

14

,229

,704

.17

$

Res

trict

ed30

2,37

0.91

$

16

,716

,689

.58

$

13,1

33,5

49.8

8

3,

105,

406.

30

1,

702,

004.

89

1,

522,

202.

46

80

0,00

9.47

1,

050,

015.

35

1,

026,

714.

22

1,

118,

905.

13

Unr

estri

cted

1,71

7,81

4.96

1,60

0,73

6.28

1,24

1,40

2.28

114,

118.

94

(1,4

79,9

47.6

0)

(1

,453

,879

.57)

30,8

61.0

8

(2

,205

,674

.73)

(10,

055,

895.

66)

(1

0,59

6,37

7.81

)

To

tal d

istri

ct n

et a

sset

s16

,687

,949

.93

$

16,4

84,0

79.8

4$

16

,635

,926

.13

$

14,8

68,4

42.8

2$

13

,001

,720

.72

$

12,7

81,1

31.4

5$

13

,918

,474

.68

$

13,6

42,7

98.9

1$

5,

290,

031.

82$

4,

752,

231.

49$

* - R

esta

ted

Unr

estri

cted

in 2

014

for t

he e

ffect

s of

GAS

B 68

Sou

rce:

CA

FR S

ched

ule

A-1

91

See

Acco

mpa

nyin

g Au

dito

r's R

epor

t

Littl

e Eg

g H

arbo

r Tow

nshi

p Sc

hool

Dis

tric

tEx

hibi

t J-2

Cha

nges

in N

et A

sset

s,Fo

r the

Fis

cal Y

ear E

nded

Jun

e 30

, 201

5(a

ccru

al b

asis

of a

ccou

ntin

g)

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Expe

nses

Gov

ernm

enta

l act

iviti

es:

Inst

ruct

ion:

Reg

ular

8,00

8,03

1.84

$

16

6,54

7.02

$

9,18

1,33

8.44

$

10

,110

,801

.06

$

11,4

34,2

91.2

8$

11

,179

,521

.49

$

11,1

98,2

79.4

1$

11

,523

,957

.47

$

11,7

28,0

53.5

0$

12

,995

,710

.07

$

Sp

ecia

l edu

catio

n3,

449,

669.

05

3,68

7,64

7.76

3,

720,

182.

03

3,50

7,71

6.18

3,

407,

840.

62

3,22

3,86

2.93

3,

338,

852.

22

3,58

0,53

9.94

3,

978,

999.

01

4,71

9,89

0.53

Oth

er in

stru

ctio

n38

0,36

6.34

328,

351.

39

45

5,97

3.56

612,

349.

40

55

4,34

0.89

627,

537.

96

67

3,78

0.02

726,

434.

97

91

4,48

9.47

1,35

8,68

4.51

Supp

ort S

ervi

ces:

Tuiti

on20

,101

.94

109,

148.

52

12

3,06

9.81

186,

536.

99

70

,722

.26

105,

716.

01

14

5,16

3.25

225,

877.

37

17

4,18

8.97

13,3

98.7

8

Stud

ent &

inst

ruct

ion

rela

ted

serv

ices

3,77

6,95

1.12

4,

042,

512.

71

4,16

9,52

9.24

5,

211,

340.

10

6,36

4,28

0.88

6,

936,

084.

15

5,90

0,25

0.00

6,

736,

634.

20

6,61

8,01

4.29

7,

771,

640.

78

Sc

hool

adm

inis

trativ

e se

rvic

es1,

092,

836.

13

881,

628.

17

81

3,29

6.15

1,12

4,33

5.71

98

5,65

6.23

855,

860.

27

87

7,29

1.47

931,

595.

33

93

3,42

5.57

820,

128.

14

Gen

eral

& B

usin

ess

adm

inis

trativ

e se

rvic

es1,

416,

968.

73

1,49

8,86

7.28

1,

550,

124.

93

1,56

6,86

6.48

1,

718,

592.

45

1,57

2,89

3.15

1,

728,

957.

32

1,73

7,88

7.50

1,

784,

697.

74

1,64

7,40

6.06

Plan

t ope

ratio

ns a

nd m

aint

enan

ce1,

877,

339.

05

#2,

106,

623.

51

2,10

8,98

3.38

2,

114,

166.

45

2,32

1,47

3.16

2,

291,

944.

09

2,23

8,75

0.33

2,

136,

146.

38

2,13

5,66

2.65

2,

079,

673.

34

Pu

pil t

rans

porta

tion

1,39

1,00

8.20

0

1,51

9,72

6.88

1,

584,

396.

24

1,68

1,85

4.93

1,

429,

502.

27

1,33

3,94

1.16

1,

378,

758.

44

1,46

8,39

6.57

1,

302,

295.

04

1,37

6,09

0.33

Cha

rter S

choo

lsIn

tere

st o

n lo

ng-te

rm d

ebt

230,

178.

75

33

5,68

5.00

392,

000.

00

1,

592,

897.

97

1,36

3,92

7.63

1,

165,

764.

13

1,15

0,78

1.13

1,

077,

120.

50

1,04

9,21

6.17

1,

161,

340.

08

U

nallo

cate

d de

prec

iatio

nU

nallo

cate

d Am

ortiz

atio

n of

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t Iss

ue C

osts

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4.62

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tal g

over

nmen

tal a

ctiv

ities

exp

ense

s21

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14,6

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4

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,102

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.41

27,7

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0

29

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.67

29,2

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25.3

4

28

,630

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30,1

44,5

90.2

3

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,619

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.41

33,9

43,9

62.6

2

Busi

ness

-type

act

iviti

es:

Food

ser

vice

525,

294.

36

54

8,19

2.71

584,

422.

84

65

7,52

8.04

671,

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85

64

9,80

3.90

713,

091.

81

90

2,43

5.60

875,

440.

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86

2,82

0.35

O

ther

219,

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48

26

7,91

4.48

194,

906.

20

28

5,02

6.65

369,

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30

5,92

7.50

385,

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83

35

0,52

6.58

624,

251.

94

Tota

l bus

ines

s-ty

pe a

ctiv

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ense

s52

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85

2,33

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852,

434.

24

95

6,79

9.50

1,01

9,53

8.38

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31

1,28

7,67

8.43

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225,

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1,48

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Tota

l dis

trict

exp

ense

s22

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$

15,4

43,9

55.4

3$

24

,955

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.73

$

28,5

65,3

44.1

4$

30

,607

,427

.17

$

30,3

12,6

63.7

2$

29

,649

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.90

$

31,4

32,2

68.6

6$

31

,845

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.44

$

35,4

31,0

34.9

1$

Prog

ram

Rev

enue

sG

over

nmen

tal a

ctiv

ities

:C

harg

es fo

r ser

vice

s34

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.93

$

23,7

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6$

-

$

-$

Ope

ratin

g gr

ants

and

con

tribu

tions

2,74

0,72

9.72

$

2,

613,

251.

61$

2,60

5,54

1.43

$

6,

964,

407.

11$

5,04

4,49

4.84

$

5,

696,

681.

17$

5,94

7,29

6.97

5,

517,

315.

21

5,81

0,68

7.95

11

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C

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l gra

nts

and

cont

ribut

ions

82,9

50.3

2

16

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-

Tota

l gov

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l act

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es p

rogr

am re

venu

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740,

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72

2,61

3,25

1.61

2,

605,

541.

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6,96

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7.11

5,

044,

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84

5,69

6,68

1.17

5,

981,

650.

90

5,62

4,04

8.99

5,

827,

158.

47

11,0

00,6

61.6

9

Busi

ness

-type

act

iviti

es:

Cha

rges

for s

ervi

ces:

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ser

vice

240,

618.

68

28

2,06

6.55

255,

343.

18

26

0,67

8.57

262,

226.

49

28

2,67

3.93

291,

683.

79

31

1,71

2.43

324,

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38

33

4,17

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31

3,51

3.41

218,

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04

24

5,19

1.36

350,

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54

38

6,84

6.04

394,

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33

4,67

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Ope

ratin

g gr

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and

con

tribu

tions

253,

550.

84

27

0,61

1.82

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35

0,49

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420,

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44

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56

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53

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Tota

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82

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To

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3,71

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$

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972,

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6,77

8,14

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$

7,

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6,89

8,41

0.33

$

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12,4

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Net

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1,88

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2,94

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Busi

ness

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61

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(24,

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$

(22,

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$

92

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ear E

nded

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e 30

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ccru

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ccou

ntin

g)

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Gen

eral

Rev

enue

s an

d O

ther

Cha

nges

in N

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10

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$

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10

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10,5

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2007

2008

2009

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2014

2015

Gen

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Fun

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272,

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nded

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2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Rev

enue

sTa

x Le

vy9,

317,

415

$

9,

689,

725

$

9,

930,

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9

8,12

4,01

4

8,25

4,54

4

Spec

ial e

duca

tion

inst

ruct

ion

2,01

3,54

8

1,97

2,14

3

2,05

4,22

2

2,01

9,95

0

2,41

0,60

1

2,

270,

773

2,35

5,08

0

2,51

2,53

3

2,84

0,56

3

2,84

7,85

2

Oth

er s

peci

al e

duca

tion

inst

ruct

ion

284,

619

211,

810

314,

527

423,

382

392,

124

44

2,01

5

475,

255

509,

753

652,

844

662,

324

Supp

ort S

ervi

ces:

Tuiti

on20

,102

109,

149

123,

070

186,

537

70,7

22

105,

716

14

5,16

3

21

8,04

9

17

4,18

9

13

,399

Stud

ent &

inst

ruct

ion

rela

ted

serv

ices

2,85

8,62

4

2,91

9,97

5

2,99

6,32

6

3,91

4,73

0

4,49

0,62

1

4,

885,

528

4,31

1,98

3

4,96

5,99

9

4,97

5,33

7

5,17

1,37

4

Gen

eral

& B

usin

ess

adm

inis

trativ

e se

rvic

es1,

112,

248

1,

172,

496

1,

161,

107

73

6,81

5

1,

212,

635

1,10

7,88

9

1,

219,

531

1,

219,

509

1,

274,

076

1,

239,

138

Sc

hool

adm

inis

trativ

e se

rvic

es76

6,42

7

53

9,95

8

56

1,24

2

1,

227,

746

69

5,47

7

602,

837

61

8,80

3

65

3,71

8

66

6,36

2

61

6,88

0

Pl

ant o

pera

tions

and

mai

nten

ance

1,43

3,22

0

1,70

4,56

3

1,67

3,49

3

1,65

9,23

7

1,93

2,49

0

1,

652,

925

1,57

9,11

6

1,53

4,22

9

1,57

2,58

3

1,56

4,27

8

Pupi

l tra

nspo

rtatio

n1,

371,

765

1,

489,

651

1,

555,

400

1,

653,

308

1,

429,

502

1,33

3,94

1

1,

378,

758

1,

468,

397

1,

302,

295

1,

376,

090

U

nallo

cate

d em

ploy

ee b

enef

its4,

591,

105

5,

516,

077

5,

995,

368

5,

894,

858

6,

261,

297

6,63

0,60

1

6,

450,

623

6,

799,

726

6,

618,

023

7,

202,

313

C

harte

r Sch

ools

7,82

8

-

-

C

apita

l out

lay

377,

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1,21

5,77

0

4,01

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7

17,7

32,1

46

1,

397,

604

315,

430

1,

154,

301

2,

547,

395

42

4,55

3

22

6,33

8

D

ebt s

ervi

ce:

Prin

cipa

l49

0,00

0

51

0,00

0

52

5,00

0

54

0,00

0

60

4,00

0

870,

000

89

0,00

0

80

0,00

0

83

0,00

0

85

5,00

0

In

tere

st a

nd o

ther

cha

rges

239,

445

212,

205

183,

765

1,46

1,38

8

1,38

1,02

3

1,

183,

308

1,14

1,78

3

1,09

7,78

3

1,06

3,30

8

1,02

7,88

8

Tota

l Exp

endi

ture

s21

,686

,374

24,1

36,3

14

27

,933

,055

44,9

99,2

71

30

,366

,358

29

,275

,416

29

,589

,415

32,4

21,4

99

30

,518

,146

31,0

57,4

18

Ex

cess

(Def

icie

ncy)

of r

even

ues

over

(und

er) e

xpen

ditu

res

334,

623

16,8

45,3

69

(3

,676

,390

)

(1

1,03

6,70

5)

2,

554,

302,

397

(265

,786

)

1,

827,

110

(2

,454

,495

)

(3

47,3

68)

(301

,559

)

Oth

er F

inan

cing

Sou

rces

(Use

s)Tr

ansf

ers

(50,

000)

(32,

840)

-

-

-

-

-

C

apita

l Lea

se R

even

ue

Tota

l oth

er fi

nanc

ing

sour

ces

(use

s)(5

0,00

0)

(3

2,84

0)

-

-

-

-

-

-

-

-

Net

cha

nge

in fu

nd b

alan

ces

284,

623

$

16,8

12,5

29$

(3

,676

,390

)$

(1

1,03

6,70

5)$

2,

554,

302,

397

$

(265

,786

)

1,

827,

110

(2

,454

,495

)

(3

47,3

68)

(301

,559

)

Deb

t ser

vice

as

a pe

rcen

tage

of

nonc

apita

l exp

endi

ture

s3.

42%

3.15

%2.

96%

7.34

%6.

85%

7.09

%7.

15%

#6.

35%

6.29

%6.

11%

Sour

ce: C

AFR

Sch

edul

e B-

2

95


Little Egg Harbor Township School District Exhibit J-5General Fund Other Local Revenue by Source,For the Fiscal Year Ended June 30, 2015Unaudited

Fiscal Year Interest on TuitionEnded June 30, Investments Revenue Miscellaneous Totals

2006 180,494.87 25,387.08 51,223.98 166,547.02 2007 202,341.00 17,154.30 525,345.67 744,840.97 2008 104,328.13 31,552.98 13,402.16 149,283.27 2009 20,642.13 61,720.00 49,130.27 131,492.40 2010 20,487.47 61,630.26 55,930.86 138,048.59 2011 17,095.94 59,035.46 295,847.54 371,978.94 2012 40.04 34,353.93 104,088.55 138,482.52 2013 2,642.08 23,783.46 89,936.82 116,362.36 2014 4,059.65 125.00 161,408.86 165,593.51 2015 4,258.71 32,487.85 134,055.11 170,801.67

Source: District Records

96

See

Acc

ompa

nyin

g A

udito

r's R

epor

t

Littl

e Eg

g H

arbo

r Tow

nshi

p Sc

hool

Dis

tric

tEx

hibi

t J-6

Asse

ssed

Val

ue a

nd A

ctua

l Val

ue o

f Tax

able

Pro

pert

y,Fo

r the

Fis

cal Y

ear E

nded

Jun

e 30

, 201

5

Tota

l Dis

trict

Est

imat

edN

etS

choo

l Tax

Cou

nty

Tota

l Ass

esse

dU

tiliti

esV

alua

tion

Rat

eE

qual

ized

Year

Vac

ant L

and

Res

iden

tial

Farm

Reg

ular

Q F

arm

Com

mer

cial

Indu

stria

lA

partm

ent

Val

uea

Taxa

ble

bV

alue

2006

-R17

9,04

2,60

0

2,

703,

572,

989

2,

220,

700

68

,671

14

5,66

1,40

0

56

6,10

0

3,

060,

000

3,

034,

192,

460

5,

988,

464

3,

040,

180,

924

0.

318

2,33

1,50

6,32

9

2007

160,

884,

400

2,80

4,39

4,18

9

2,22

0,70

0

73,4

27

145,

989,

800

566,

100

3,06

0,00

0

3,11

7,18

8,61

6

6,15

8,47

2

3,12

3,34

7,08

8

0.31

7

2,

872,

595,

997

20

0815

8,79

4,30

0

2,

837,

818,

989

2,

638,

500

70

,366

16

3,63

3,50

0

56

6,10

0

3,

060,

000

3,

166,

581,

755

6,

439,

970

3,

173,

021,

725

0.

330

3,09

4,58

2,89

5

2009

147,

903,

300

2,80

5,87

0,78

9

2,63

7,50

0

79,7

32

168,

048,

700

566,

100

3,06

0,00

0

3,12

8,16

6,12

1

6,57

0,96

9

3,13

4,73

7,09

0

0.35

7

3,

066,

000,

647

20

1013

6,78

5,50

0

2,

655,

632,

189

2,

558,

600

79

,939

16

2,07

1,04

9

56

6,10

0

3,

060,

000

2,

960,

753,

377

6,

779,

754

2,

967,

533,

131

0.

389

2,85

6,00

3,25

9

2011

124,

822,

000

2,66

6,79

9,78

9

2,84

3,40

0

80,6

31

1 51,

717,

049

566,

100

3,06

0,00

0

2,94

9,88

8,96

9

5,95

5,86

2

2,95

5,84

4,83

1

0.39

6

2,

866,

592,

618

20

1211

6,30

3,40

0

2,

636,

568,

189

2,

819,

400

78

,896

14

9,60

5,74

9

56

6,10

0

3,

060,

000

2,

909,

001,

734

5,

851,

082

2,

914,

852,

816

0.

406

2,71

8,81

2,88

0

2013

111,

911,

000

2,53

1,44

3,93

9

2,81

9,40

0

78,8

96

144,

064,

463

566,

100

3,06

0,00

0

2,79

3,94

3,79

8

5,25

1,71

2

2,79

9,19

5,51

0

0.43

0

2,

446,

432,

508

20

1415

2,04

9,10

0

2,

425,

444,

439

1,

953,

200

79

,058

15

9,31

9,26

3

56

6,10

0

3,

060,

000

2,

742,

471,

160

4,

242,

303

2,

746,

713,

463

0.

446

2,34

2,38

8,46

9

2015

-r11

2,34

7,90

0

1,

941,

283,

983

1,

705,

400

35

,392

14

7,74

1,81

5

55

8,10

0

2,

883,

700

2,

206,

556,

290

-

2,

206,

556,

290

0.

578

2,26

7,93

6,87

4

Not

e :

Rea

l pro

perty

is re

quire

d to

be

asse

ssed

at s

ome

perc

enta

ge o

f tru

e va

lue

(fair

or m

arke

t val

ue) e

stab

lishe

d by

eac

h co

unty

boa

rd o

f tax

atio

n.

RR

eval

uatio

nr

Rea

sses

smen

ta

Taxa

ble

Val

ue o

f Mac

hine

ry, I

mpl

emen

ts a

nd E

quip

men

t of T

elep

hone

, Tel

egra

ph a

nd M

esse

nger

Sys

tem

Com

pani

esb

Tax

rate

s ar

e pe

r $10

0

R =

Rev

alua

tion

Sou

rce:

Cou

nty

Abs

tract

of R

atab

les

& M

unic

ipal

Tax

Ass

esso

r

97

See

Acc

ompa

nyin

g A

udito

r's R

epor

t

Littl

e Eg

g H

arbo

r Tow

nshi

p Sc

hool

Dis

tric

tEx

hibi

t J-7

Dire

ct a

nd O

verla

ppin

g Pr

oper

ty T

ax R

ates

,Fo

r the

Fis

cal Y

ear E

nded

Jun

e 30

, 201

5(r

ate

per $

100

of a

sses

sed

valu

e)

Fisc

alTo

tal

Yea

rG

ener

alP

inel

ands

*D

irect

and

End

eda

Obl

igat

ion

Tota

lC

ount

yC

ount

yC

ount

yC

ount

yR

egio

nal

Mun

icip

alO

verla

ppin

gJu

ne 3

0,B

asic

Rat

eD

ebt S

ervi

ce b

Dire

ctG

ener

alLi

brar

yH

ealth

Ope

n S

pace

Sch

ool

Loca

l Pur

pose

Tax

Rat

e#

2006

- R

0.30

6

0.

012

0.

318

0.21

7

0.

024

0.01

0

0.

009

0.35

4

0.

386

1.31

8

20

070.

304

0.01

3

0.31

7

0.

236

0.02

8

0.

012

0.01

2

0.

362

0.41

4

1.

381

2008

0.31

9

0.

011

0.

330

0.24

7

0.

029

0.01

2

0.

012

0.37

4

0.

443

1.44

7

20

090.

334

0.02

3

0.35

7

0.

249

0.02

9

0.

012

0.01

2

0.

397

0.46

1

1.

517

2010

0.35

1

0.

038

0.

389

0.25

9

0.

030

0.01

2

0.

011

0.45

0

0.

490

1.64

1

20

110.

351

0.04

6

0.39

6

0.

272

0.03

2

0.

012

0.01

2

0.

439

0.51

7

1.

680

2012

0.36

1

0.

045

0.

406

0.27

3

0.

031

0.01

2

0.

011

0.47

3

0.

532

1.73

8

20

130.

376

0.04

4

0.42

0

0.

280

0.03

3

0.

012

0.01

1

0.

500

0.54

8

1.

804

2014

0.40

2

0.

044

0.

446

0.28

6

0.

031

0.01

2

0.

011

0.51

6

0.

560

1.86

2

20

15-r

0.52

3

0.

055

0.

578

0.35

4

0.

039

0.01

4

0.

013

0.65

6

0.

695

2.34

9

aTh

e di

stric

t's b

asic

tax

rate

is c

alcu

late

d fro

m th

e A

4F fo

rm w

hich

is s

ubm

itted

with

the

budg

et a

nd th

e N

et v

alua

tion

taxa

ble.

bR

ates

for d

ebt s

ervi

ce a

re b

ased

on

each

yea

r's re

quire

men

ts.

r = R

eass

essm

ent

R =

Rev

alua

tion

* =

This

Rat

e in

clud

es th

e M

unic

ipal

Ope

n S

pace

Tax

for y

ears

200

2 fo

rwar

d.

Sou

rce:

Dis

trict

Rec

ords

and

Mun

icip

al T

ax C

olle

ctor

Littl

e E

gg H

arbo

r Tow

nshi

p S

choo

l Dis

trict

Ove

rlapp

ing

Rat

es

98

See

Acc

ompa

nyin

g A

udito

r's R

epor

t

Littl

e Eg

g H

arbo

r Tow

nshi

p Sc

hool

Dis

tric

tEx

hibi

t J-8

Prin

cipa

l Pro

pert

y Ta

x Pa

yers

,Fo

r the

Fis

cal Y

ear E

nded

Jun

e 30

, 201

5

Taxa

ble

% o

f Tot

alTa

xabl

e%

of T

otal

Ass

esse

dD

istri

ct N

etA

sses

sed

Dis

trict

Net

Taxp

ayer

Val

ueR

ank

Ass

esse

d V

alue

Val

ueR

ank

Ass

esse

d V

alue

TBH

LLC

.11

,869

,100

$

10.

54%

Mys

tic P

artn

ers

10,0

80,0

00

2

0.46

%7,

123,

100

$

4

0.23

%A

T &

T10

,000

,000

30.

45%

8,29

4,00

0

20.

27%

Hea

lthte

ch P

rope

rties

7,20

0,00

0

40.

33%

Arm

stro

ng T

ucke

rton,

LLC

7,10

0,00

0

50.

32%

3,28

0,80

0

60.

11%

Sea

Oak

s G

olf C

lub

6,62

5,00

0

60.

30%

9,51

4,60

0

10.

31%

And

win

Rea

lty In

vest

ors,

LLC

4,15

0,00

0

70.

19%

1,79

3,20

0

90.

06%

Mys

tic In

vest

or A

ssoc

iatio

n3,

694,

400

8

0.17

%2,

727,

500

7

0.09

%W

alm

art (

Vac

ant L

and)

3,13

7,80

0

90.

14%

WA

WA

, Inc

.3,

137,

200

10

0.14

%P

yram

id N

ursi

ng H

ome,

C/O

DP

Ser

vice

7,29

6,50

0

30.

24%

Ver

izon

4,

022,

581

5

0.13

%W

indi

ng R

un E

stat

es b

y K

ara,

LLC

2,43

4,70

0

80.

08%

Tota

ls66

,993

,500

$

3.04

%46

,486

,981

$

1.53

%

Dis

trict

Ass

esse

d V

alue

2,20

6,55

6,29

0$

3,04

0,18

0,92

4$

Sou

rce:

Dis

trict

CA

FR &

Mun

icip

al T

ax A

sses

sor

Dis

trict

Tot

al T

axab

le V

alue

2015

2006

99


Little Egg Harbor Township School District Exhibit J-9Property Tax Levies and Collections,For the Fiscal Year Ended June 30, 2015

FiscalYear Collections in

Ended Taxes Levied for Percentage SubsequentJune 30, the Fiscal Year Amount of Levy Years

2006 9,317,415.00 9,317,415.00 100% - 2007 9,689,725.00 9,689,725.00 100% - 2008 9,930,778.00 9,930,778.00 100% - 2009 10,472,594.00 10,472,594.00 100% - 2010 11,197,815.00 11,197,815.00 100% - 2011 11,533,838.00 11,533,838.00 100% - 2012 11,712,286.00 11,712,286.00 100% - 2013 11,819,372.00 11,819,372.00 100% - 2014 11,772,562.00 11,772,562.00 100% - 2015 12,234,233.00 12,234,233.00 100% -

Note : School taxes are collected by the Municipal Tax Collector. Under New Jersey State Statute,a municipality is required to remit to the school district the entire property tax balance, in theamount voted upon or certified prior to the end of the school year.

Source: District records including the Certificate and Report of School Taxes (A4F form)

Collected within the Fiscal Yearof the Levy

100


Little Egg Harbor Township School District Exhibit J-10Ratios of Outstanding Debt by Type,For the Fiscal Year Ended June 30, 2015

FiscalYear General Percentage

Ended Obligation Capital of Personal * aJune 30, Bonds Leases Total District Income a Per Capita

#2006 3,950,000 171,140 4,121,140 0.92% 38,029 2007 21,204,000 120,995 21,324,995 0.19% 40,302 2008 20,679,000 222,349 20,901,349 0.20% 41,275 2009 28,134,000 138,272 28,272,272 0.19% 40,510 2010 27,530,000 57,742 27,587,742 0.14% 40,611 2011 26,660,000 6,441 26,666,441 0.15% 41,986 2012 25,770,000 1,584,626 27,354,626 0.16% 43,200 2013 24,970,000 1,194,114 26,164,114 0.16% 43,200 2014 24,140,000 1,190,889 25,330,889 0.17% 43,200 2015 23,235,000 602,002 23,837,002 0.17% 43,214

Note : Details regarding the district's outstanding debt can be found in the notes to the financial statements.

a See Exhibit NJ J-14 for personal income and population data. These ratios are calculated using per population for the prior calendar year.

* = This data is only available for the entire County of Ocean.

Source: District CAFR Schedules I-1, I-2

Governmental Activities

101


Little Egg Harbor Township School District Exhibit J-11Ratios of Net General Bonded Debt Outstanding,For the Fiscal Year Ended June 30, 2015

Fiscal Percentage of *Year General Net General Actual Taxable

Ended Obligation Bonded Debt Value ofJune 30, Bonds Deductions Outstanding Property Per Capita

2006 3,950,000 - 3,950,000 0.13% 38,029 2007 21,204,000 - 21,204,000 0.68% 40,302 2008 20,679,000 - 20,679,000 0.65% 41,275 2009 28,134,000 - 28,134,000 0.90% 40,510 2010 27,530,000 - 27,530,000 0.93% 40,611 2011 26,660,000 - 26,660,000 0.90% 41,986 2012 25,770,000 - 25,770,000 0.88% 43,200 2013 24,970,000 - 24,970,000 0.89% 43,200 2014 24,140,000 - 24,140,000 0.88% 43,200 2015 23,235,000 - 23,235,000 1.05% 43,214

Note: Details regarding the district's outstanding debt can be found in the notes to the financial statementsa See Exhibit NJ J-7 for property tax data.b Population data can be found in Exhibit NJ J-14.


Governmental Activities

102


Little Egg Harbor Township School District Exhibit J-12Direct and Overlapping Governmental Activities Debt,For the Fiscal Year Ended June 30, 2015

EstimatedEstimated Share of

Debt Percentage OverlappingGovernmental Unit Outstanding Applicable Debt

Debt Repaid with Property Taxes

Local Municipality 20,542,864.01$ 100.00% 20,542,864.01$

Other Debt

Pinelands Regional School District 9,273,000.00 74.05% 6,866,533.35 County of Ocean 462,467,710.54 2.60% 12,017,968.63

Subtotal, Overlapping Debt 39,427,366.00$

School District Direct Debt 23,235,000.00 100.00% 23,235,000.00

Total Direct and Overlapping Debt 62,662,366.00$

Sources: Township of Little Egg Harbor Finance Officer and Ocean County Finance Office

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of theDistrict. This schedule estimates the portion of the outstanding debt of those overlapping governments that isborne by the residents and businesses of the Township of Hamilton. This process recognizes that, whenconsidering the District's ability to issue and repay long-term debt, the entire debt burden borne by theresidents and businesses should be taken into account. However this does not imply that every taxpayer is aresident, and therefore, responsible for repaying the debt, of each overlapping payment.

a For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated usingtaxable assessed property values. Applicable percentages were estimated by determining the portionof another governmental unit's taxable value that is within the district's boundaries and dividing it byeach unit's total taxable value.

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104


Little Egg Harbor Township School District Exhibit J-14Demographic and Economic Statistics,For the Fiscal Year Ended June 30, 2015

Fiscal PersonalYear Income Per Capita

Ended a (thousands of Personal UnemploymentJune 30, Population dollars) b Income Rate c

2006 20,215 768,756 38,029 5.7%2007 20,479 825,345 40,302 5.0%2008 20,677 853,443 41,275 7.7%2009 20,824 843,580 40,510 10.2%2010 20,102 816,362 40,611 10.3%2011 20,162 846,522 41,986 10.0%2012 20,065 866,808 43,200 10.4%2013 20,065 866,808 43,200 7.3%2014 20,065 866,808 43,200 6.1%2015 20,396 881,393 43,214 8.6%

Source:a This data is only available for the entire County of Oceanb Personal income is calculated by multiplying per capita income by the populationc Unemployment data provided by the NJ Dept of Labor and Workforce Development


105

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106


Little Egg Harbor Township School District Exhibit J-16Full-time Equivalent District Employees by Function/Program,For the Fiscal Year Ended June 30, 2015

2007 2008 2009 2010 2011 2012 2013 2014 2015

Function/Program

Instruction:Regular instruction 109.00 107.00 127.00 132.00 129.00 127.00 127.00 126.00 125.00 Special education instruction 26.00 26.50 23.50 25.00 27.00 26.00 27.77 28.00 28.50

Support Services:Student & instruction related services 74.00 82.50 87.50 96.00 96.00 97.00 98.93 107.13 108.00 General administrative services 4.00 4.00 4.00 5.00 4.00 5.00 5.00 5.00 5.00 School administrative services 19.00 13.00 12.00 14.00 12.00 10.00 8.50 9.00 9.00 Business administrative services 6.00 6.00 10.00 9.00 9.00 10.00 9.85 9.50 9.50 Plant operations and maintenance 20.00 20.00 41.00 37.00 18.00 19.00 25.15 22.62 23.52 Pupil transportation 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50

Food Service 7.00 7.00 5.00 11.00 21.00 20.68 19.51

Total 267.00 267.00 311.00 330.00 296.00 295.00 324.20 329.43 329.53

Source: District Personnel Records

**This schedule does not containten years of information as GASB #44 was implemented during the fiscalyear ending June 30, 2006.

107

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108


Little Egg Harbor Township School District Exhibit J-18School Building Information,For the Fiscal Year Ended June 30, 2015

2007 2008 2009 2010 2011 2012 2013 2014 2015

District Buildings

ElementaryGeorge J. Mitchell Elementary

Square Feet 93,230 93,230 97,030 114,428 114,428 114,428 114,428 114,428 114,428 Capacity (students) 668 668 728 835 835 835 835 835 835 Enrollment 861 813 808 1,003 979 975 740 908 891

ElementaryFrog Pond Elementary School

Square Feet 101,800 101,800 101,800 101,800 101,800 101,800 101,800 101,800 101,800 Capacity (students) 767 705 705 705 705 705 705 705 705 Enrollment 832 851 980 824 849 780 801 760 731

OtherAdministration

Square Feet 4,193 4,193 4193 4193 4,193 4,193 4,193 4,193 4,193 Transportation*

Square Feet * * * * * * * * *

Number of Schools at June 30, 2012Elementary - 2Other -1

Source: District Records, ASSA

* indicates the Transportation Officeis included inside the Frog Pond Elementary Schooland the TCUs are included in the Mitchell Elementary School# excludes 30 Headstart Preschool students being taught at OCEAN, Inc., a private provider**This schedule does not containten years of information as GASB #44 was implemented during the fiscalyear ending June 30, 2007.

109

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110


Little Egg Harbor Township School District Exhibit J-20Insurance ScheduleFor the Fiscal Year Ended June 30, 2015(Unaudited)

Amount ofCompany Type of Coverage Coverage Deductible

School Alliance Insurance FundSchool Package Policy

Property, Special, Multi-Peril & Contents $ 250,000,000 1,000Comprehensive Automobile Liability 15,000,000

Umbrella Liability : Umbrella Policy 5,000,000

School Board Legal Liability 2,500,000 5,000

Fidelity Bonds:Position Bond - Board Secretary 250,000

Workers' Compensation:Each Accident 5,000,000

Source: District Records

111

SINGLE AUDIT SECTION


The Honorable President and Members of the Board of Education Little Egg Harbor Township School District County of Ocean, New Jersey We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and audit requirements as prescribed by the Office of School Finance, Department of Education, State of New Jersey, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Little Egg Harbor Township School District, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Little Egg Harbor Township School District’s basic financial statements, and have issued our report thereon dated December 4, 2015. Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Little Egg Harbor Township School District’s control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Little Egg Harbor Township School District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

112

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Little Egg Harbor Township School District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and audit requirements as prescribed by the Office of School Finance, Department of Education, State of New Jersey.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Ford, Scott & Associates, L.L.C. FORD, SCOTT & ASSOCIATES, L.L.C. CERTIFIED PUBLIC ACCOUNTANTS Michael S. Garcia Michael S. Garcia Certified Public Accountant Licensed Public School Accountant No. 2080

December 4, 2015

113


Honorable President and Members of the Board of Education Little Egg Harbor Township School District County of Ocean, New Jersey

Report on Compliance for Each Major Federal & State Program

We have audited the Little Egg Harbor Township School District’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement and the New Jersey State Aid/Grant Compliance Supplement that could have a direct and material effect on each of the Little Egg Harbor Township School District’s major federal and state programs for the year ended June 30, 2015. The Little Egg Harbor Township School District’s major federal and state programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal and state programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of the Little Egg Harbor Township School District’s major federal and state programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, and New Jersey 04-04 State Aid/Grant Compliance Supplement. Those standards and Circulars require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal or state program occurred. An audit includes examining, on a test basis, evidence about the Little Egg Harbor Township School District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal and state program. However, our audit does not provide a legal determination of the Little Egg Harbor Township School District’s compliance. Opinion on Each Major Federal and State Program

In our opinion, the Little Egg Harbor Township School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal and state programs as identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned costs for the year ended June 30, 2015.

114

Report on Internal Control Over Compliance

Management of the Little Egg Harbor Township School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Little Egg Harbor Township School District’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal and state program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal and state program and to test and report on internal control over compliance in accordance with OMB Circular A-133 and NJ OMB 04-04, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Little Egg Harbor Township School District’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal or state program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal or state program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133 and NJ OMB 04-04. Accordingly, this report is not suitable for any other purpose.

Ford, Scott & Associates, L.L.C. FORD, SCOTT & ASSOCIATES, L.L.C. CERTIFIED PUBLIC ACCOUNTANTS Michael S. Garcia Michael S. Garcia Certified Public Accountant Licensed Public School Accountant No. 2080

December 4, 2015

115

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117

LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICT NOTES TO THE SCHEDULES OF EXPENDITURES OF AWARDS

AND FINANCIAL ASSISTANCE JUNE 30, 2015

NOTE 1 GENERAL The accompanying schedules of expenditures federal awards and state financial assistance include federal and state award activity of the Board of Education, Little Egg Harbor Township School District. The Board of Education is defined in Note 1 (A) to the Board's basic financial statements. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies is included on the schedule of expenditures of federal awards and state financial assistance. NOTE 2 BASIS OF ACCOUNTING The accompanying schedules of federal awards and state financial assistance are presented on the budgetary basis of accounting with the exception of programs recorded in the food service fund, which are presented using the accrual basis of accounting. These bases of accounting are described in Notes 1 (C) and 1 (D) to the Board's basic financial statements. The information included in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. NOTE 3 RELATIONSHIP TO BASIC FINANCIAL STATEMENTS The basic financial statements present the general fund and special revenue fund on a GAAP basis. Budgetary comparison statements or schedules (RSI) are presented for the general fund and special revenue fund to demonstrate finance-related legal compliance in which certain revenue is permitted by law or grant agreement to be recognized in the audit year, whereas for GAAP reporting, revenue is not recognized until the subsequent year or when expenditures have been made. The general fund is presented in the accompanying schedules on the modified accrual basis with the exception of the revenue recognition of the last two state aid payments in the current budget year, which is mandated pursuant to N.J.S.A. 18A:22-44.2. For GAAP purposes that payments are not recognized until the subsequent budget year due to the state deferral and recording of the last two state aid payments in the subsequent year. The special revenue fund is presented in the accompanying schedules on the grant accounting budgetary basis, which recognizes encumbrances as expenditures and also recognizes the related revenues, whereas the GAAP basis does not. The special revenue fund also recognizes the last two state aid payments in the current budget year, consistent with N.J.S.A. 18A:22-4.2. The net adjustment to reconcile from the budgetary basis to the GAAP basis is ($4,379.00), for the general fund and $19,985.66 for the special revenue fund. See the Notes to the Required Supplementary Information for a reconciliation of the budgetary basis to the modified accrual basis of accounting for the general and special revenue funds. Awards and financial assistance revenues are reported in the Board's basic financial statements on a GAAP basis as follows:

Federal State Local TPAF Pension Total

General Fund $ 49,800.34 $ 12,510,916.86 $ (1,630,445.00) $ 10,930,272.20 Special Revenue Fund 715,080.94 4,384,576.92 $ 165,794.00 5,265,451.86 Debt Service Fund - 672,204.00 672,204.00 Food Service Fund 527,136.58 9,322.69 536,459.27

$ 1,292,017.86 $ 17,577,020.47 $ 165,794.00 $ (1,630,445.00) $ 17,404,387.33

The On-Behalf Pension Contributions made for the district by the State of New Jersey are recognized as revenue in the basic financial statements, but are not considered in the major program determination.

118

LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICT NOTES TO THE SCHEDULES OF EXPENDITURES OF AWARDS

AND FINANCIAL ASSISTANCE JUNE 30, 2015 (CONTINUED)

NOTE 4 RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports. NOTE 5 OTHER Revenues and expenditures reported under the Food Distribution Program represent current year value received and current year distributions, respectively. The amount reported as TPAF Pension Contributions represents the amount paid by the State on behalf of the District for the year ended June 30, 2015. TPAF Social Security Contributions represents the amount reimbursed by the State for the employer’s share of social security contributions for TPAF members for the year ended June 30, 2015.

119

LITTLE EGG HARBOR TOWNSHIP SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDING JUNE 30, 2015 I. SUMMARY OF AUDITORS RESULTS Financial Statements Type of auditor’s report issued: Unmodified Opinion Internal control over financial reporting: 1) Material weakness identified? No 2) Significant deficiencies identified? None reported Noncompliance material to the Basic Financial Statements noted? No Federal Awards Internal control over major programs: 1) Material weakness identified? No 2) Significant deficiencies identified? None reported Type of auditor’s report issued on compliance

for major programs: Unmodified Opinion Any audit findings disclosed that are required to be reported In accordance with section .510(a) of Circular A-133? No Identification of major programs:

Child Nutrition Cluster of Programs 10.553 School Breakfast Program 10.555 National School Lunch Program Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee? Yes

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FOR THE YEAR ENDING JUNE 30, 2015 (CONTINUED)

I. SUMMARY OF AUDITORS RESULTS - CONTINUED State Awards Dollar threshold used to distinguish between type A and Type B Programs: $483,320 Auditee qualified as low-risk auditee? Yes Type of auditor’s report issued on compliance

for major programs: Unmodified Opinion Internal Control over major programs: 1) Material weakness identified? No

2) Significant deficiencies identified? None reported

Any audit findings disclosed that are required to be reported In accordance with NJ OMB Circular Letter 04-04? No Identification of major programs: GMIS Numbers Name of State Program 495-034-5120-086 Preschool Aid 495-034-5120-075 Debt Service Aid

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FOR THE YEAR ENDING JUNE 30, 2015 (CONTINUED)

II. FINDINGS RELATING TO THE FINANCIAL STATEMENTS WHICH ARE REQUIRED TO BE

REPORTED IN ACCORDANCE WITH GENERALLY ACCEPTED GOVERNMENTAL AUDITING STANDARDS

In accordance with Government Auditing Standards, our audit disclosed no findings relating to the

financial statements that are required to be reported under this section. III. FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED

COSTS Federal: Our audit disclosed no material Findings or Questioned Costs.

State: Our audit disclosed no material Findings or Questioned Costs.

STATUS OF PRIOR YEAR FINDINGS There were no prior year findings.

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comprehensive annual financial...

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